Question

The cost of a wedding has skyrocketed in recent years. As a result, many couples are...

The cost of a wedding has skyrocketed in recent years. As a result, many couples are opting to have their weddings in the Caribbean. A Caribbean vacation resort recently advertised that the cost of a Caribbean wedding was less than \$10 000. Listed below is the total cost (in \$ thousands) for a sample of eight Caribbean weddings:

 \$10.0 \$9.8 \$9.1 \$9.4 \$9.6 \$10.5 \$10.8 \$10.7

a. State the null hypothesis and the alternate hypothesis. (Enter the final answers in thousands of dollars.)

H0: μ ≥

H1: μ <

b. State the decision rule for 0.10 significance level. (Negative answer should be indicated by a minus sign. Round the final answer to 3 decimal places.)

Reject H0 if t <            .

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

Value of the test statistic

d. At the 0.10 significance level, is it reasonable to conclude the mean wedding cost is less than \$10,000 as advertised?

(Click to select)  Reject  Do not reject  H0. There is  (Click to select)  enough  not enough  evidence to conclude that the cost is less than \$10,000.

a)

H0: >= 10

Ha: < 10

b)

t critical value at 0.10 significance level with 6 df = -1.440

Decision rule = Reject H0, if t < -1.440

c)

From sample data,

= 9.8857 , S = 0.6012

Test statistics

t = ( - ) / ( S /sqrt(n) )

= ( 9.8857 - 10) / ( 0.6012 / sqrt ( 7 ) )

= -0.503

d)

Since test statistics > -1.440 , Do not reject H0.

Do not reject  H0. There is not enough  evidence to conclude that the cost is less than \$10,000.

Earn Coins

Coins can be redeemed for fabulous gifts.

Need Online Homework Help?

Most questions answered within 1 hours.

Active Questions
• true/false An unweighted path length measures the number of edges in a graph. Breadth first search...
• Give an example of the effect of interest rate changes on a fixed coupon bond, what...
• Thirty-two small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5...
• The value of the integral   ∫C(3x2+ycosx)dx+(sinx−4y3)dy∫C(3x2+ycos⁡x)dx+(sin⁡x−4y3)dy, where CC is an arbitrary path from A(−π,−1)A(−π,−1) to B(2π,1)B(2π,1),...
• the ordinates of a 6-h unit hydrograph for a particular catchment are 0,10,30,50,40,30,20,10 and 0 m3/s...
• Please solve this using R code Part 3: A particular item is handmade in two stages...