According to the National Funeral Directors Association (NFDA), the nation's 19,000 funeral homes collected an average of
Question:
According to the National Funeral Directors Association (NFDA), the nation's 19,000 funeral homes collected an average of $7,180 per full-service funeral in 2014 (www.nfda.org). A random sample of 36 funeral homes reported revenue data for the current year. Among other measures, each reported its average fee for a full-service funeral. These data (in thousands of dollars) are shown in the following table.
a. What are the appropriate null and alternative hypotheses to test whether the average full-service fee of U. S. funeral homes this year is less than $7,180?
b. Conduct the test at α = .05. Do the sample data provide sufficient evidence to conclude that the average fee this year is lower than in 2014?
c. In conducting the test, was it necessary to assume that the population of average full-service fees was normally distributed? Justify your answer.
Step by Step Answer:
Statistics For Business And Economics
ISBN: 9780134506593
13th Edition
Authors: James T. McClave, P. George Benson, Terry Sincich