A consumer product magazine recently ran a story concerning the increasing prices of digital cameras. The story stated that digital camera prices dipped a couple of years ago, but now are beginning to increase in price because of added features. According to the story, the average price of all digital cameras a couple of years ago was $215.00. A random sample of cameras was recently taken and entered into a spreadsheet. It was desired to test to determine if that average price of all digital cameras is now more than $215.00. The information was entered into a spreadsheet and the following printout was obtained:
One-Sample T Test
Null Hypothesis: μ = 215
Alternative Hyp: μ > 215
Variable
Mean
SE
Lower
Upper
T
DF
P
Camera Price
245.23
15.620
212.740
277.720
1.94
21
0.0333
Cases Included 22
Is a sample size n = 22 large enough to utilize the central limit theorem in this inferential procedure?
◦ No, since either np or nq is less than 15
◦ No, since n < 30
◦ Yes, since the central limit theorem works whenever means are used
◦ Yes, since both np and nq are greater than or equal to 15
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