Joshua G. answered 08/07/19
Biostatistics PhD with 7+ Years Experience Instructing Math/Statistics
Since the claim that the mean is equal to $23,000 is being tested, this claim is false when the mean is not equal to $23,000, and there is no single direction of interest specified for departures from the original claim we have the following:
- We will be conducting a two-tailed test.
- We will be conducting a t-test since the population variance is unknown.
- The test statistic is t = -1.488.