PhStat solution:

A marketing researcher wants to estimate the mean amount spent ($) on Amazon.com by Amazon Prime member shoppers. Suppose a random sample of 100 Amazon Prime member shoppers who recently made a purchase on Amazon.com yielded a mean amount spent of $1,500 and a standard deviation of $200.

1.Using a 0.05 level of significance, state your decision.

2.Using the critical value approach, is there evidence that the population mean amount spent on Amazon.com by Amazon Prime member shoppers is less than $1,475?

3.Determine the p-value and interpret its meaning.