Annual per capita consumption of milk is 21.6 gallons ( Statistical Abstract of
ID: 3216568 • Letter: A
Question
Annual per capita consumption of milk is 21.6 gallons (Statistical Abstract of the United States: 2006). Being from the Midwest, you believe milk consumption is higher there and wish to support your opinion. A sample of 16 individuals from the mid western town of Webster City showed a sample mean annual consumption of 24.1 gallons with a standard deviation of s = 4.8.
Develop a hypothesis test that can be used to determine whether the mean annual consumption in Webster City is higher than the national mean.
H0: (greater than 21.6) (greater than or equal to 21.6) (equal to 21.6less than or equal to 21.6) (less than 21.6) (not equal to 21.6)
Ha: (greater than 21.6) (greater than or equal to 21.6) (equal to 21.6less than or equal to 21.6) (less than 21.6) (not equal to 21.6)
Explanation / Answer
Null and Alternative Hypothesis:
H0: less than or equal to 21.6
Ha: greater than 21.6
Or
H0: µ 21.6
Ha: µ > 21.6
Level of significance:
Alpha = .05
Test Statistics:
t = ( x bar - µ) / ( s / sqrt (n))
= (24.1 – 21.6) /(4.8/sqrt(16))
= 2.083
Decision:
The null hypothesis can be rejected if the value of the test statistics is greater than the critical t.
For 15 degrees of at 5% level of significance we get the critical t from t-table as 1.753
The test value 2.083 is greater than 1.753; the null hypothesis can be rejected.
Conclusion: There is sufficient evidence to conclude that the mean annual consumption in Webster City is higher than the national mean.
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