500
The U.S. Dept of Agriculture claims that the
mean cost of raising a child from birth to age 2 by
husband-wife families in rural areas is $10,380. A
random sample of 800 children (age 2) has a mean
cost of $10,240 with a standard deviation of $1561.
At alpha=0.05, is there enough evidence to reject
the claim?
(z=-2.54 P-value=.0055 compare to .025, reject H_0)
There is enough evidence
at the 5% level of
significance to reject the claim that
the mean cost
of raising a child from birth to age 2 is $10,380.