Atechnical magazine stated that the mean retail cost of all models of a particular laptop was $600. a random sample of 10 stores that sell that laptop in los angeles found it sold with a mean cost of $586.50 and a standard deviation of $26.77. does this indicate that the mean cost of that laptop in los angeles is less than $600?

We conclude that the mean cost of that laptop in Los Angeles is same as $600 at 0.05 significance level.

Step-by-step explanation:

We are given the following in the question:  

Population mean, μ = $600

Sample mean, = $586.50

Sample size, n = 10

Alpha, α = 0.05

Sample standard deviation, s = $26.77

First, we design the null and the alternate hypothesis

We use One-tailed(left) t test to perform this hypothesis.

Formula:

Putting all the values, we have

Now,

Since,                  

We fail to reject the null hypothesis and accept the null hypothesis.

We conclude that the mean cost of that laptop in Los Angeles is same as $600 at 0.05 significance level.