Discussion:
Steadily rising transportations expend larger portions of the consumer budget. This test is specifically targeting funds spent on public transportation, gasoline, or toll fees. In order ascertain whether the average consumer is maintaining an average weekly transportation cost of $30, sample data was collected. The data set is as follows:
(40, 40, 45, 51)
Null Hypothesis
The null hypothesis states that consumers continue to spend $30 a week or less on transportation. Ho: µ < $30.00
Alternative Hypothesis
The alternative hypothesis states that consumers are now spending more than $30 per week on transportation. H1: µ > $30.00
• Formulation of the null and the alternative hypotheses
• Specification of the level of significance
• Calculation of the test statistic
• Definition of the region of rejection
• Selection of the appropriate hypothesis