HYPOTHESIS-TESTING

According to the Okavanggo website, the mean price for a bottle of red wine that scores 4.0 or higher on the Okavanggo Rating System is $32.48. A New England-based lifestyle magazine wants to determine if red wines of the same quality are less expensive in Providence, and it has collected prices for 56 randomly selected red wines of similar quality from wine stores throughout Providence. The mean and standard deviation for this sample are $30.15 and $12, respectively.

1.Determine the hypothesis test to be used by identifying the test variable and the grouping variable.

2.Formulate the appropriate Ho & Ha in either traditional or operational manner as well as in numerical form to determine if the sample data support the conclusion that the mean price in Providence for a bottle of red wine that scores 4.0 or higher on the Okavanggo Rating System is less than the population mean of $32.48.

3.Make the statistical decision assuming that the p-value is 0.0475.

4.Formulate the statistical conclusion.