What is the appropriate test statistic

Assignment Help Basic Statistics

Reference no: EM133009798

Question: The Depantment of Health is concerned that the average percentage mark up on aparticular vitamin product is more than 40%. To test their concern, they sampled 100pharmacies that sell the product, and found that the mean percentage mark-up was 44.1%.

Asume that the population standard deviation of the percentage mark up P is 14.7

a. What is the appropriate test statistic for this test situation? Why ?

b. Conduct an appropriate statistical test at the 19% level of significance todetermine whether the Department of Health''s concern is justified. WhatCorcdlution can be orawn?

c. Compute the p- value for the test in b. and draw the appropriate managementConchusion based an the p-value.

Reference no: EM133009798

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