Question: Last year, the average cost for upscale kitchen remodeling in an exclusive suburb of Chicago was $68,900, with a standard deviation of $15,800. A researcher

Last year, the average cost for upscale kitchen remodeling in an exclusive suburb of Chicago was $68,900, with a standard deviation of $15,800. A researcher wishes to find out if the $68,900 average also describes the upscale kitchen remodeling jobs completed in an exclusive suburb of Detroit. Modeling cost information is obtained for a random sample of 16 homeowners. The mean cost for the upscale kitchen remodeling jobs in the sample equals $66,500.

a. The researcher wishes to conduct a hypothesis test for what population?

b. What is the null hypothesis, H₀?

c. What is the alternative hypothesis, H₁?

d. Specify the decision rule, using the .05 level of significance.

e. Calculate the standard error of the mean.

f. Calculate the value of z.

g. What is your decision about H₀?

h. Using words, interpret this decision in terms of the original problem.

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