Chapter 7.2, Problem 10TY

In Example 10, at α = 0.01, is there enough evidence to reject the claim?

EXAMPLE 10

Hypothesis Testing Using Rejection Regions

A researcher claims that the mean annual cost of raising a child (age 2 and under) by married-couple families in the U.S. is $14,050. In a random sample of married-couple families in the U.S., the mean annual cost of raising a child (age 2 and under) is 513,795. The sample consists of 500 children. Assume the population standard deviation is $2875. At α = 0.10, is there enough evidence to reject the claim? (Adapted from U.S. Department of Agriculture Center for Nutrition Policy and Promotion)