The cost of weddings in the United States has skyrocketed in recent years. As a
ID: 3289865 • Letter: T
Question
The cost of weddings in the United States has skyrocketed in recent years. As a result, many couples are opting to have their weddings in the Caribbean. A Caribbean vacation resort recently advertised in Bride Magazine that the cost of a Caribbean wedding was less than $10,000. Listed below is a total cost in $000 for a sample of 8 Caribbean weddings. At the 0.050 significance level is it reasonable to conclude the mean wedding cost is less than $10,000 as advertised?
8.6
8.5
12.4
10.5
9.5
8.6
9.4
9.4
State the null hypothesis and the alternate hypothesis. Use a .05 level of significance. (Enter your answers in thousands of dollars. HINT: This means the units are thousands, not ones. If you paid a $5000 bill, how many $1000 bills would you need? If you paid the same bill in $1 bills, how many $1 bills would you need? Make sure you use the correct units.)
State the decision rule for 0.050 significance level. (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places.)
Compute the value of the test statistic. (Negative amount should be indicated by a minus sign.Round your answer to 3 decimal places.)
What is the conclusion regarding the null hypothesis?
The cost of weddings in the United States has skyrocketed in recent years. As a result, many couples are opting to have their weddings in the Caribbean. A Caribbean vacation resort recently advertised in Bride Magazine that the cost of a Caribbean wedding was less than $10,000. Listed below is a total cost in $000 for a sample of 8 Caribbean weddings. At the 0.050 significance level is it reasonable to conclude the mean wedding cost is less than $10,000 as advertised?
Explanation / Answer
a)H0: 10
H1: <10
b)
degree of freedom =n-1=7
for 7 degree of freedom and 0.05 level of significance; decision rule:
reject Ho: if t<-1.895
c)
therefore test statistic t=(X-mean)/std error =(9.613-10)/0.462 =-0.839
d)
Do not reject H0. The cost is not less than $10000
X 8.6 8.5 12.4 10.5 9.5 8.6 9.4 9.4 mean(X) 9.613 std deviation(S) 1.307 std error =S/(n)1/2 0.462Related Questions
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