Question
According to a report by the U.S. government, the price of a six-pack of beer in the United States is $5 on average . According
According to a report by the U.S. government, the price of a six-pack of beer in the United States is $5 on average. According to research at www.cesar.umd.edu, increasing the price of alcohol reduces drinking and alcohol-related problems, including accidents, violence, and disease. The state of Maryland's beer taxes are among the highest in the nation. Maybe Maryland has more expensive beer and therefore less alcohol-related problems than other states.
So, You want to test this idea that Maryland has more expensive beer so you take a random sample of 145 six-packs of beer from stores in Prince George's County and find that the average price is $5.13 with a standard deviation of $ 0.5.
Is the price of beer significantly more expensive in Maryland than elsewhere in the United States?
*** Use an alpha of .05 and remember to state each of the steps in your test.
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