A restaurant association says the typical household spends a

A restaurant association says the typical household spends a mean of $3682 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 restaurnant associations claim at a=0.10?

4543, 4358, 2020, 2440, 2077, 2613, 4389, 4065, 3731, 2299, 3237, 4217

A) Write a claim mathamatically and identify H0 and Ha

B) Use technology to find the P-value

C) Decide to reject or fail the null hypothisis

Solution

H0: mu = 3682

Ha: mu not equals 3682

Two sided test.

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n = 12 very small , hence t test is used.

The value of t is -1.222082.

The P-Value is 0.247218.

The result is not significant at p < 0.01.

Fail to reject null hypothesis.