Question

1) The mean cost of a steak, broccoli, and ride at the grocery store is $13.04. A sample of 100 restaurants had a mean price of $12.75 and a standard deviation of $2 for the same meal. Run a hypothesis test to determine if it is cheaper to eat at a restaurant than to cook the meal yourself!

Answer 1

Answer:

Since p >0.05 at 5% significance level we reject that it is cheaper to eat at a restaurant than to cook the meal yourself!

Step-by-step explanation:

Given that the mean cost of a steak, broccoli, and ride at the grocery store is $13.04.

Sample size n = 100

Sample mean = $\bar x = 12.75\\s=2$

Std error of sample = $\frac{2}{\sqrt{100} } =0.20$

$H_0: \bar x = 13.04\\H_a: \bar X$

(Left tailed test)

Mean difference = $13.04-12.75=0.29$

Test statistic = t = mean diff/std error

= $\frac{0.29}{0.20} =1.45$

p value one tailed =0.075

Since p >0.05 at 5% significance level we reject that it is cheaper to eat at a restaurant than to cook the meal yourself!