Compute test statistic and compare it to decision rule

Reference no: EM13151107

A sample of 20 pages was taken without replacement from the 1,591-page phone directory Ameritech Pages Plus Yellow Pages. On each page, the mean area devoted to display ads was measured (a display ad is a large block of multicolored illustrations, maps, and text). The data (in square millimeters) are shown below:

0 260 356 403 536 0 268 369 428 536

268 396 469 536 162 338 403 536 536 130

(a) Construct a 95 percent confidence interval for the true mean.
(b) Why might normality be an issue here?
(c) What sample size would be needed to obtain an error of ± 10 square millimeters with 99 percent confidence?
(d) If this is not a reasonable requirement, suggest one that is. (Data are from a project by MBA student Daniel R. Dalach.)

• Write a Null and Alternative Hypothesis
• Select a Level of Significance
• Choose a Test Statistic
• Write a decision rule for the computed test statistic
• Make a decision by computing the test statistic and comparing it to the decision rule spelling out in English just what the decision means in terms of the question in the problem.

Reference no: EM13151107

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