A popular charity used 29% of its donations on expenses. An organizer for a rival charity wanted to quickly provide a donor with evidence that the popular charity has expenses that are higher than other similar charities. The organizer randomly selected 20 similar charities and examined their donations. The charity conducts a one-mean hypothesis at the 5% significance level, to test whether the mean is less than 29%. (a) Which answer choice shows the correct null and alternative hypotheses for this test.
H0:μ=0.29; Ha:μ<0.29, which is a left-tailed test.
(b) The percentages of the donations that those 20 charities spend on expenses are given below.
Use Excel to test whether the mean is less than 29%. Identify the test statistic, t, rounding to two decimal places, and p-value, rounding to three decimal places from the Excel output.
21
9
24
14
25
31
23
37
19
25
31
20
41
32
26
32
27
35
5
25
Test Statistic= P-value=