Question
Historically, American households have spent an average of around $250 per year on Christmas decorations with a population standard deviation of $130. It is expected
Historically, American households have spent an average of around $250 per year on Christmas decorations with a population standard deviation of $130. It is expected that the average will increase this year. A random sample of 36 households is taken. The mean expenditure on Christmas decorations this year has been $283. Assume the population standard deviation is still $130 as it has been in previous years. Test the claim that the mean expenditure on Christmas decorations is greater than $250 this year. Use 0.05 as your level of significance. Be sure to report the p-value and write an interpretation in terms of the claim that we have been told to test.
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