Decision using the decision rule approach

Reference no: EM1318957

The manufacturer of a certain type of ATM machine reports that the mean ATM withdrawal is $60. The manager of a convenience store with an ATM machine thinks that mean withdrawal from his machine is less than this amount. He obtains a simple random sample of 35 withdrawals over the past year and finds the sample mean to be $ 54. Assume that the population standard deviation is $ 13.

a) What is the sampling distribution of the sample mean? __________________

b) State the hypotheses- H₀ and H₁.

c) Compute a test statistic. _________________

d) Determine the corresponding p-value. __________________

e) Make a decision using the p-value approach at the given α = 0.05.

f) Compute a cutoff value (or critical value) ______________

g) Make a decision using the Decision Rule approach at given α = 0.05.

Reference no: EM1318957

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