n order to study the amounts owed to the city council, a city clerk takes a random sample of 16 files from a cabinet containing a large number of delinquent accounts and finds the average amount owed to the city to be $231. It has been claimed that the true mean amount owed on accounts of this type is greater than $250. If it is appropriate to assume that the amount owed is a normally distributed random variable with a standard deviation of $40, then the value of the test statistic appropriate for testing the claim is

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asked by Dick
  1. Z = (mean1 - mean2)/standard error (SE) of difference between means

    SEdiff = √(SEmean1^2 + SEmean2^2)

    SEm = SD/√(n-1)(You can use n for simplicity.)

    If only one SD is provided, you can use just that to determine SEdiff.

    Find table in the back of your statistics text labeled something like "areas under normal distribution" to find the proportion related to that Z score.

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    posted by PsyDAG
  2. 0.246?

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    posted by bill

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