1. A study is performed in a large southern town to determine whether the average weekly grocery bill per four-person family in the town is significantly different from the national average. A random sample of the weekly grocery bills of four-person families in this town is given in the file.

a. Identify the null and alternative hypotheses for this situation.

b. Assume that the national average weekly grocery bill for a four-person family is $100. Test the hypothesis that the average weekly grocery bill per four-person family in the town is not significantly different from the national average. (alpha = 5%)

c. For which values of the sample mean (i.e., average weekly grocery bill) would you reject the null hypothesis at the 1% significance level? For which values of the sample mean would you reject the null hypothesis at the 10% level?

d. Repeat a and b to test the hypothesis that the average weekly grocery bill per four-person family in the town is significantly higher than the national average. (alpha = 5%)

Subject | Mathematics |

Due By (Pacific Time) | 08/16/2013 12:00 pm |

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