Question 7 Not yet answered Marked out of1.00 Flag question A national survey st

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Question 7 Not yet answered Marked out of1.00 Flag question A national survey states that the average price Americans pay for a frozen pizza is $2.90. After running a hypothesis test for H : -2.90 vs. Ha: > 2.90 with = .05, the decision is made to reject the null hypothesis. Which of the following is the best interpretation of our results? Select one O a. There is insufficient evidence at the a .05 level that the average amount spent by Americans on a frozen pizza is $2.90 O b. There is sufficient evidence at the a .05 level that the average amount spent by Americans on frozen pizza is more than $2.90 c. There is insufficient evidence at the a = .05 level that the average amount spent by Americans on a frozen pizza is greater than $2.90. d. The data prove that Americans will spend more than $2.90 on a frozen pizza. Previous page Next page

Explanation / Answer

Solution:-

7)

b) There is sufficient evidence at the alpha = 0.05, level that the average amount spent by Americans on frozen pizza is more than $ 2.90.

8)c) t = - 8.84, Reject H0

State the hypotheses. The first step is to state the null hypothesis and an alternative hypothesis.

Null hypothesis: > 61
Alternative hypothesis: < 61

Note that these hypotheses constitute a one-tailed test. The null hypothesis will be rejected if the sample mean is too small.

Formulate an analysis plan. For this analysis, the significance level is 0.01. The test method is a one-sample t-test.

Analyze sample data. Using sample data, we compute the standard error (SE), degrees of freedom (DF), and the t statistic test statistic (t).

SE = s / sqrt(n)

S.E = 0.2828
DF = n - 1

D.F = 49
t = (x - ) / SE

t = - 8.84

where s is the standard deviation of the sample, x is the sample mean, is the hypothesized population mean, and n is the sample size.

The observed sample mean produced a t statistic test statistic of - 8.84.

Thus the P-value in this analysis is less than 0.0001.

Interpret results. Since the P-value (almost 0) is less than the significance level (0.01), we cannot reject the null hypothesis.

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