Value Paid. Florence owns a shop that has products within the value range of $10. She wants to make a prediction of the mean value a customer would pay for her products by checking whether on average customers will pay more than $5.

a) Write the appropriate hypotheses.

b) Florence plans to test a hypothesis by selecting a random sample of 50 customers’ value paid. Do you think the necessary assumptions for inference are satisfied? Explain.

c) Describe the approximate sampling distribution model for the mean value paid in such samples.

d) The value paid in Florence’s sample has an average value of $5.50 with a standard deviation of $2.15. What is the P-value for this?

e) Explain the meaning of the P-value in this context.

f) What is your conclusion?