00:01
For this problem, we are told to suppose that a weight loss company advertises that people using its program lose an average of eight pounds the first month, and that the ftc is gathering evidence to see if this advertising claim is accurate.
00:14
If the ftc finds evidence that the average is less than eight pounds, we're told that the agency will file a lawsuit against the company for false advertising.
00:24
So, in part a, we are asked, what are the null and alternative hypotheses that the ftc should, should use.
00:33
So let's see here.
00:35
The null hypothesis would be that i'll say it's mu for the average weight loss equals 8.
00:46
The alternative hypothesis would be that mu is less than 8.
00:54
In part b, we're told to suppose that the ftc gathers information from a very large random sample of patrons and finds that the average weight loss during the first month in the program is x bar equals 7 .9 pounds with a p p value for this result of 0 .006.
01:09
We're asked what is the conclusion of the test and are the results statistically significant.
01:15
So reasonably, even at the 1 % significance level, we would reject the null hypothesis and conclude that the claims are true.
01:27
And the results in this case are very statistically significant...