Executives at Gammon & Ninowski Media Investments, a top television station brokerage, believe that the current average price for an independent television station in the United States is $125 million.
An analyst at the firm wants to check whether the executives' claim is true. The analyst has no prior suspicion that the claim is incorrect in any particular direction and collects a random sample of 25 independent TV stations around the country. The results are (in millions of dollars) 233, 128, 305, 57, 89, 45, 33, 190, 21, 322, 97, 103, 132, 200, 50, 48, 312, 252, 82, 212, 165, 134, 178, 212, 199.
Test the hypothesis that the average station price nationwide is $125 million versus the alternative that it is not $125 million. Use a significance level of your choice.