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You conduct a study in a large southern town to determine whether the average amount spent on food per four-person family in the town is
You conduct a study in a large southern town to determine whether the average amount spent on food per four-person family in the town is lower than the national average per four-person family.A random sample of the weekly grocery bills of 50 four-person families reveals a mean of $145.88 and a standard deviation of $17.2988616.Usingexactlythese numbers and an alpha level of .05, and producing accurate calculations:
- What is the null hypothesis (in words)?
- What is the alternative hypothesis (in words)?
- What statistical test are you using to test this hypothesis?
- Does this problem call for adirectionaltest or anon-directionaltest?Why?
- What is the value of the standard error?
- What is the value of tstat?
- What is the number of degrees of freedom for this statistical test?(Provide a numeric value)
- What is the value of tcritagainst which you will compare tstatfor this hypothesis?
- Based on these data, can we be 95% confident that the average weekly grocery bill of the population of four-person families in the town is less than the national average of four-person families?(Yes or No).Justify your answer.
- Using theexactformula (NOT the approximate formula) provided in class, what are the lower and upper bounds of a 95% confidence interval for the average amount spent on food per four-person family in the town? (Provide values accurate to the nearest dollar.)
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