Julian is a manager at a clothing store for teens. He is analyzing the order for next season. Data for the previous 10 years suggests that teens are willing to spend an average of $75 for a pair of designer jeans with a standard deviation of $5. However, Julian thinks the average may have changed due to a recession. He finds that the last three seasons of data show that teens spent an average of $68 on a pair of jeans Therefore, he performed a hypothesis test to see if the recent average is the same. Julian used a significance level of 5% to perform the test. Which is a valid statement?

Question

Julian is a manager at a clothing store for teens. He is analyzing the order for next season. Data for the previous 10 years suggests that teens are willing to spend an average of $75 for a pair of designer jeans with a standard deviation of $5. However, Julian thinks the average may have changed due to a recession. He finds that the last three seasons of data show that teens spent an average of $68 on a pair of jeans  Therefore, he performed a hypothesis test to see if the recent average is the same. Julian used a significance level of 5% to perform the test. Which is a valid statement?

de47 · Answer

Julian’s data shows that the recent seasons’ average jean price is not $75.
Julian’s data shows that he should order fewer jeans than before.
Julian’s data shows that the recent seasons’ average jean price is still $75.
Julian’s data is inconclusive, so he should order the same number of jeans.

de47 · Answer

I think that the null hypothesis can be rejected but.... im not sure...

de47 · Answer

help!! will give medals!!