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At the time she was hired as a server at the Grumney Family Restaurant, Beth Brigden was told, You can average $89 a day in

At the time she was hired as a server at the Grumney Family Restaurant, Beth Brigden was told, You can average $89 a day in tips. Assume the population of daily tips is normally distributed with a standard deviation of $2.81. Over the first 40 days she was employed at the restaurant, the mean daily amount of her tips was $92.66. At the 0.01 significance level, can Ms. Brigden conclude that her daily tips average more than $89?

a. State the null hypothesis and the alternate hypothesis.
H0: >89 ; H1: = 89
H0: = 89 ; H1: 89
H0: 89 ; H1: > 89
H0: 89 ; H1: < 89

b. State the decision rule.
Reject H1 if z > 2.33
Reject H1 if z < 2.33
Reject H0 if z < 2.33
Reject H0 if z > 2.33

c. Compute the value of the test statistic. (Round your answer to 2 decimal places.)

Value of the test statistic

d. What is your decision regarding H0?
Reject H0
Do not reject H0

e. What is the p-value? (Round your answer to 4 decimal places.)

p-value

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