According to the U.S. Energy Information Administration the average number of televisions per household in the United States was 2.3. A college student claims the average number of TV’s per household in the United States is different. He obtains a random sample of 73 households and finds the mean number of TV’s to be 2.1 with a standard deviation of 0.84. Test the student’s claim at the 0.01 significance level.

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Answer with explanation:

Let [tex]\mu[/tex] be the average number of televisions per household in the United States .

As per given ,

[tex]H_0:\mu =2.3\\\\ H_a:\mu\neq2.3[/tex]

Since [tex]H_a[/tex] is two-tailed and population standard deviation is unknown, so the test is two-tailed t-test.

For sample : Sample size : n= 73, sample mean: [tex]\overline{x}[/tex] = 2.1, sample standard deviation : s= 0.84.

[tex]t=\dfrac{\overline{x}-\mu}{\dfrac{s}{\sqrt{n}}}[/tex]

[tex]t=\dfrac{2.1-2.3}{\dfrac{0.84}{\sqrt{73}}}\\\\ t=-2.034[/tex]

T-critical value for degree of freedom n-1 = 73-1=72 and 0.01 significance level is 2.646 . [By students' t-distribution table]

Since, [tex]|2.034|<2.646[/tex] i.e. [tex]|T_{cal}|<|T_{crit}|[/tex]

This means we cannot reject null hypothesis.

We conclude that the average number of televisions per household in the United States is 2.3 at the 0.01 significance level.