The average daily volume of a computer stock in 2011 was μ=35.1 million shares, according to a reliable source. A stock analyst believes that the stock volume in 2018 is different from the 2011 level. Based on a random sample of 40 trading days in 2018, he finds the sample mean to be 31.8 million shares, with a standard deviation of s=14.6 million shares. Test the hypotheses by constructing a 95% confidence interval.
(a) State the hypotheses for the test.
(b) Determine if the researcher will reject the null hypothesis.

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Netta00 Netta00 · Answer 1 · 2021-06-15T08:22:56+02:00

Answer:

The 95% confidence interval is ( 27.126 , 34.674)

Step-by-step explanation:

Given

The t critical value at 0.05 level = 2.023 for the df = 39

Confidence interval = 95%

Mean

[tex]\bar{x} - t * \frac{s}{\sqrt{n} } < \mu < \bar{x} + t * \frac{s}{\sqrt{n} }[/tex]

Substituting the given values we get -

[tex]\30.9 - 2.023 * \frac{11.8}{\sqrt{40} } < \mu < \30.9 + 2.023 * \frac{11.8}{\sqrt{40} }\\27.126 < \mu < 34.674[/tex]

Hence, the 95% confidence interval is

( 27.126 , 34.674)