Hypothesis Testing: Suppose a PM claims that users, on average, spend about $50 per month on Amazon. However, you doubt this claim and believe the average should be higher. You sample 100 users and find the sample mean is $85. Would you reject the PM's claim? Assume population standard deviation is 20.
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Question: Hypothesis Testing: Suppose a PM claims that users, on average, spend about $50 per month on Amazon. However, you doubt this claim and believe the average should be higher. You sample 100 users and find the sample mean is $85. Would you reject the PM's claim? Assume population standard deviation is 20.
We perform a one-sided z-test:
Since the p-value is far below the 0.05 threshold, we reject the null hypothesis and conclude that the average user spend is statistically greater than $50.
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