Question
Executives at Sale Mart Supermarket claim that a typical family of four spends $200 weekly on routine, non-holiday, grocery purchases. According to published industry standards,
Executives at Sale Mart Supermarket claim that a typical family of four spends $200 weekly on routine, non-holiday, grocery purchases. According to published industry standards, the population standard deviation is $25.
Stuyvesant, yet another stats intern at corporate headquarters, wonders if that original claim by the executives is simply inaccurate, without further specifications. As a project, he collects from store sales receipts a simple random sample (SRS) of size 225. The sample mean for the weekly grocery purchases for a family of four is $196. He is defining as rare, or unusually extreme, any sample mean that is in either the bottom 1% or the top 1% of all possible sample means, for a total of 2%; hence, he is testing at the 2% level of significance. What conclusion should Stuyvesant draw, based on the available evidence?
What is the p-value,expressed as a percentagerounded to two decimal places without insignificant digits?
HINT: You may need to double the p-value since current spreadsheet functions for the normnal and standard normal distribution do not have two-tail options when reporting results.
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