Which is cheaper: eating out or dining in? The mean cost of a flank steak, brocc

Question

Which is cheaper: eating out or dining in? The mean cost of a flank steak, broccoli, and rice bought at the grocery store costs $13.04 (Money.msn website, November 7, 2012). A sample of 100 neighborhood restaurants showed a mean price of $12.75 and a standard deviation of $2 for a comparable restaurant meal.

a. Develop appropriate hypotheses for a test to determine whether the sample data support the conclusion that the mean cost of a restaurant meal is less than fixing a comparable meal at home.
H0:

Ha:

b. Compute a range for the p-value using the sample from the 100 restaurants and the t distribution table (Table 2 in Appendix B).

The p-value is

c. At = .05, what is your conclusion?

A) Reject Null Hypothesis

B) DO Not reject null hypothesis

d. Repeat the preceding hypothesis test using the critical value approach.

because the test statistic is (INSIDE OR OUTSIDE) of the critical values range.

Select your answer greater than or equal to 13.04 greater than 13.04 less than or equal to 13.04 less than 13.04 equal to 13.04 not equal to 13.04

Explanation / Answer

Ho: greater than or equal to 13.04

Ha: less than 13.04

b)

std error of mean =std deviaiton/(n)1/2 =2/(100)1/2 =0.2

test statistic z=(X-mean)/std error =(12.75-13.04)/0.2=-1.45

for above test statisix p value =between 0.05 and 0.10

c) B) DO Not reject null hypothesis

d)o not reject null hypothesis becaue the test statistic is outside of of the critical values range.

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