Question

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 as advertised?

9.1

9.5

10.1

8.8

8.5

10.3

9.0

9.7

a.	State the null hypothesis and the alternate hypothesis. Use a .01 level of significance. (Enter your answers in thousands of dollars.)

H0: μ ≥
H1: μ <

b.	State the decision rule for 0.010 significance level. (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places.)

Reject H0 if t <

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

Value of the test statistic

d.	What is the conclusion regarding the null hypothesis?

   (Click to select)RejectDo not reject H₀. The cost is (Click to select)lessnot less than $10,000.

Answer 1