Question: A study is performed in a large southern town to determine whether the average amount spent on food per four-person family in the town is

A study is performed in a large southern town to determine whether the average amount spent on food per four-person family in the town is significantly different from the national average. A random sample of the weekly grocery bills of two-person families in this town is given in the file. Assume the national average amount spent on food for a four-person family is $150. a. Identify the null and alternative hypotheses for this situation. b. Is the sample evidence statistically significant? If so, at what significance levels can you reject the null hypothesis? c. For which values of the sample mean (e.g., 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?

Family

Weekly food expense

1

$198.23

2

$143.53

3

$207.48

4

$134.55

5

$182.01

6

$189.84

7

$170.36

8

$163.72

9

$155.73

10

$203.73

11

$191.19

12

$172.66

13

$154.25

14

$179.03

15

$130.29

16

$170.73

17

$194.50

18

$171.14

19

$175.19

20

$177.25

21

$166.62

22

$135.54

23

$141.18

24

$158.48

25

$159.78

26

$157.42

27

$98.40

28

$181.63

29

$128.45

30

$190.84

31

$154.04

32

$190.22

33

$161.48

34

$113.42

35

$148.83

36

$197.68

37

$135.49

38

$146.72

39

$176.62

40

$154.60

41

$178.39

42

$186.32

43

$157.94

44

$116.35

45

$136.81

46

$195.58

47

$129.44

48

$146.84

49

$165.63

50

$158.97

51

$210.00

52

$175.46

53

$159.69

54

$154.56

55

$152.95

56

$177.30

57

$129.23

58

$127.40

59

$167.48

60

$183.83

61

$157.39

62

$163.24

63

$165.01

64

$137.43

65

$177.37

66

$142.68

67

$150.04

68

$161.44

69

$166.13

70

$190.96

71

$187.19

72

$116.63

73

$159.73

74

$159.64

75

$142.44

76

$153.03

77

$143.12

78

$156.35

79

$182.70

80

$129.03

81

$119.06

82

$137.99

83

$144.20

84

$183.51

85

$169.67

86

$134.66

87

$202.94

88

$143.43

89

$170.52

90

$139.53

91

$159.31

92

$134.77

93

$165.48

94

$127.20

95

$168.16

96

$125.39

97

$167.96

98

$178.64

99

$134.38

100

$111.87

Step by Step Solution

3.40 Rating (153 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To address this question lets break it down into parts a Identify the null and alternative hypotheses for this situation Null Hypothesis H0 The averag... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!