Question: 1.Statistical Abstracts (117 th edition) reports that the average amount spent annually for food by householders under 25 years of age is $2,690.A random sample
1.Statistical Abstracts (117thedition) reports that the average amount spent annually for food by householders under 25 years of age is $2,690.A random sample of 16 people under 25 years of age who live in a university neighborhood were surveyed.The survey showed that they spent a sample mean amount of $3,220 with sample standard deviation $750.Test the claim that the mean for this neighborhood is different from the national average.Use a 5% significance level. Assume our data is normally distributed.
a)State the null and alternate hypotheses.
b)Would you perform a one-tailed or two-tailed test?Why?
c)State the test statistic and p-value for your test. Round your answers to four decimal places.
d)Explain your conclusion to reject or fail to reject the null hypothesis in terms of p and .
e)Interpret your conclusion in the context of this problem.
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