Question

The number of "destination weddings" has skyrocketed in recent years. For example, many couples are opting to have their weddings in the Caribbean. A Caribbean vacation resort recently advertised in Bride Magazine that the cost of a Caribbean wedding was less than $30,000. Listed below is a total cost in $000 for a sample of 8 Caribbean weddings.

At the 0.05 significance level, is it reasonable to conclude the mean wedding cost is less than $30,000 as advertised?

31.7 30.5 31.4 28.6 29.2 29.4 29.6 28.5

State the null hypothesis and the alternate hypothesis.

Use a 0.05 level of significance. (Enter your answers in thousands of dollars.)

State the decision rule for 0.05 significance level. (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places.)

Compute the value of the test statistic. (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places.)

What is the conclusion regarding the null hypothesis?

Answer 1

	Values ( X )	\Sigma (X_{i} - \bar{X})^{2}
	31.7	3.3764
	30.5	0.4064
	31.4	2.3639
	28.6	1.5939
	29.2	0.4389
	29.4	0.2139
	29.6	0.0689
	28.5	1.8564
Total	238.9	10.3187

Mean

Standard deviation

To Test :-

H0 :-  

H1 :-  

Test Statistic :-


t = -0.320

Test Criteria :-
Reject null hypothesis if


Result :- Fail to reject null hypothesis

Decision based on P value
P - value = P ( t > 0.3203 ) = 0.379
Reject null hypothesis if P value <    level of significance
P - value = 0.379 > 0.05 ,hence we fail to reject null hypothesis
Conclusion :- Fail to reject null hypothesis

Conclusion :-

There is insufficient evidence to support the claim that the mean wedding cost is less than $30,000 as advertised at 5% level of significance.