Question

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.)**

*H*_{0}: μ ≥**
**

*H*_{1}: 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 *H*_{0} 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 *H*_{0}. There
is (Click to select) enough not
enough evidence to conclude that the cost is less than
$10,000.

Answer #1

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.

The cost of weddings in the United States 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 in Bride Magazine that the cost of a Caribbean
wedding was less than $10,000. Listed below is a total cost in $000
for a sample of 8 Caribbean weddings. At the .05 significance level
is it reasonable to conclude the mean wedding cost is less than
$10,000...

The cost of weddings in the United States 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 in Bride Magazine that the cost of a Caribbean
wedding was less than $10,000. Listed below is a total cost in $000
for a sample of 8 Caribbean weddings. At the 0.010 significance
level is it reasonable to conclude the mean wedding cost is less
than $10,000...

The cost of weddings in the United States 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 in Bride Magazine that the cost of a Caribbean
wedding was less than $10,000. Listed below is a total cost in $000
for a sample of 8 Caribbean weddings. At the 0.100 significance
level is it reasonable to conclude the mean wedding cost is less
than $10,000...

#2
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 0.10 significance level, is
it reasonable to conclude the mean wedding cost is less than
$30,000 as advertised?
29.5...

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 0.10 significance level, is
it reasonable to conclude the mean wedding cost is less than
$30,000 as advertised?
29.5
29.9...

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 0.01 significance level, is
it reasonable to conclude the mean wedding cost is less than
$30,000 as advertised?
28.3, 31.4,...

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?
29.1
30.3...

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 0.01 significance level, is it
reasonable to conclude the mean wedding cost is less than $30,000
as advertised?
28.6 28.5...

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...

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...

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