Question: A small electronics store has begun to advertise in the local newspaper. Before advertising, the long term mean weekly sales were $9 820. A random sample of 10 weeks while the newspaper ads were running had a sample mean weekly sale of \(\bar{x}\) = $10 960. Does this indicate that the population mean weekly sales is now more than $9 820? Conduct a hypothesis test at a 5% level of significance. Assume = $1580.

1. State the null and alternate hypotheses, as well as the level of significance.
2. Compute the value of the test statistic. Show your calculations.
3. Find the P -value (or P-value interval) for the sample test statistic.
4. Plot the graph the test statistic (Standard Normal Distribution OR the Student’s t Distribution). For each graph, put a title, label the horizontal axis and indicate the mean. Shade the area that we are looking for.
5. Based on your answers for parts AD,

   Reject H 0

   (b) Fail to Reject H 0

   (c) Cannot determine

   1. What is the test conclusion?
   2. How did you come up with this answer?
6. In a few sentences, interpret the results in the context of this exercise.
7. Nelly, your research partner, claims that there is a possibility to have made a Type 2 error. Is she allowed to make such a statement?

   YES

   (b) NO

   (c) Cannot determine

   1. Indicate the correct answer:
   2. Justify your answer.

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