According to the American Pet Products Manufacturers Association, cat owners spend an average of $179 annually in routine veterinary visits. A random sample of local cat owners revealed that 10 randomly selected owners spent an average of $205 with s = $26. Is there a significant statistical difference at α = 0.01?
Perform each of the following steps.
a. State the hypotheses and identify the claim.
b. Find the critical value(s).
c. Find the test value.
d. Make the decision.
e. Summarize the results.
Use the traditional method of hypothesis testing unless otherwise specified.
Assume that the population is approximately normally distributed.