A restaurant association says typical household spends a mea

A restaurant association says typical household spends a mean of $3355 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 associations claim at a=0.10? Complete parts (a) through (d)

4097, 3343, 3122, 2498, 2645, 3019, 1955, 1812, 4171, 4199, 2788, 3614

Write the claim mathematically and identify H0 and Ha

Use technology to find the P-value
P=?

Decide whether to reject or fail to reject the null hypothesis?

Interpret the decision in the context of the original claim. Assume the population is normally distributed. Choose the correct answer below

a. At the 10% significance level, there is insufficient evidence to support the claim.
b. At the 10% significance level, there is sufficient evidence to support the claim
c. At the 10% significance level, there is insufficient evidence to reject the claim.
d. At the 10% significance level, there is sufficient evidence to reject the claim.

Solution

H0: mu = 3355

Ha: mu not equals 3355

Two sided test

t test only can be used as sample size is very small

The value of t is -1.060886.

p value = 0.311479

The result is not significant at p < 0.01.

Fail to reject null hypothesis.

c. At the 10% significance level, there is insufficient evidence to reject the claim.