As input for a new inflation model, economists predicted that the average cost of a hypothetical food
Question:
As input for a new inflation model, economists predicted that the average cost of a hypothetical "food basket" in east Tennessee in July would be $145.75. The standard deviation (σ) of basket prices was assumed to be $9.50, a figure that has held fairly constant over the years. To check their prediction, a sample of twenty-five baskets representing different parts of the region were checked in late July, and the average cost was $149.75. Let α = 0.05. Is the difference between the economists' prediction and the sample mean statistically significant?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Introduction To Mathematical Statistics And Its Applications
ISBN: 9780321693945
5th Edition
Authors: Richard J. Larsen, Morris L. Marx
Question Posted: