Question
Nationally, about 11% of the total U.S. wheat crop is destroyed each year by hail. An insurance company is studying wheat hail damage claims in
Nationally, about 11% of the total U.S. wheat crop is destroyed each year by hail. An insurance company is studying wheat hail damage claims in a county in Colorado. A random sample of 16 claims in the county reported a sample mean of x = 12.7%. Assume that x has a normal distribution and = 5.0%. Do these data indicate that the percentage of wheat crop lost to hail in that county is different (either way) from the national mean of 11%? Use = 0.05.(a) State the null and alternate hypotheses. Is this a left-tailed, right-tailed, or two-tailed test? H0: = 11%; H1: > 11%; right-tailed
H0: 11%; H1: = 11%; two-tailed
H0: = 11%; H1: 11%; two-tailed
H0: = 11%; H1: < 11%; left-tailed (b) Compute the z value of the sample test statistic. Round your answer to two decimal places. ---- (c) Find (or estimate) the P-value. Round your answer to four decimal places. ---- (d) Based on your answers in parts (a) to (c), what is the result of this hypothesis test? We fail to reject the null hypothesis because the p-value is greater than = 0.05.
We fail to reject the null hypothesis because the p-value is less than = 0.05.
We reject the null hypothesis because the p-value is less than = 0.05.
We reject the null hypothesis because the p-value is greater than = 0.05.
(e) State your conclusion in the context of the application. There is sufficient evidence at the 0.05 level to conclude that the average hail damage to wheat crops in the county in Colorado is different from the national average.
There is insufficient evidence at the 0.05 level to conclude that the average hail damage to wheat crops in the county in Colorado is greater than the national average.
There is insufficient evidence at the 0.05 level to conclude that the average hail damage to wheat crops in the county in Colorado is less than the national average.
There is insufficient evidence at the 0.05 level to conclude that the average hail damage to wheat crops in the county in Colorado is different from the national average.
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