A restaurant association says the typical household spends a mean of $3298 per year on food away from home

| August 30, 2017

Question
A restaurant association says the typical household spends a mean of $3298 per year on food away from home. You are a consumer reporter for a national publication and want to test this claim. You randomly select 12 households and find out how much each spent on food away from home per year. Can you reject the restaurant’s claim at a=0.10?

4427
3728
2805
2040
3874
3256
2185
2689
3632
3650
2478
1809

a) Find the Ho and Ha

b) Find the P – valve (Round to two decimal places as needed)

c) Decide to fail or reject the null hypothesis

d) Interpret the decision in the context of the original claim. Assume the population is normally distributed.

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