Question
CNN/Money reports that the mean cost of a speeding ticket, including court fees, was $150.00 in 2002. A local police department claims that this amount
CNN/Money reports that the mean cost of a speeding ticket, including court fees, was $150.00 in 2002. A local police department claims that this amount has increased. To test their claim, they collect data from a simple random sample of 160 drivers who have been fined for speeding in the last year and find that they paid a mean of $154.00 per ticket. Assuming that the population standard deviation is $17.54, is there sufficient evidence to support the police department's claim at the 0.01 level of significance? Ho: 150.00 Ha : (Right-Tailed Test) > 150.00 = = 2.89 = Test Statistic ( ) = 154 150 ( 17.54 160) Critical Value: invNorm(.01): 2.32 p-value: .002 You can find this on the calculator or using the chart above. (1 - .01, which turns into: 1 - .9980 = .002) .0020 < 0.01 Reject the Null Conclusion: At the 0.01 level of significance the evidence supports the police department's claim that the mean cost of a speeding ticked has increased (i.e. there is sufficient evidence).
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