Question

#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	29.9	30.1	28.9	29.6	28.7	28.7	29.9

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1. State the null hypothesis and the alternate hypothesis. Use a 0.10 level of significance. (Enter your answers in thousands of dollars.)
2. State the decision rule for 0.10 significance level. (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places.)

Answer: Reject H0 if t < ???

3. 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?

4. What is the conclusion regarding the null hypothesis

Answer: ____ H0. The cost is ____ than 30,000.

Answer 1

using excel we have

t Test for Hypothesis of the Mean
Data
Null Hypothesis                m=	30000
Level of Significance	0.01
Sample Size	8
Sample Mean	29412.5
Sample Standard Deviation	569.3040865
Intermediate Calculations
Standard Error of the Mean	201.2794
Degrees of Freedom	7
t Test Statistic	-2.9188
Lower-Tail Test
Lower Critical Value	-2.9980
p-Value	0.0112
Do not reject the null hypothesis

Ho:u=30000, Ha:u<30000 the null hypothesis and the alternate hypothesis is

Reject H0 if t < -2.9980

Value of the test statistic is -2.9188

Do not Reject  H0. The cost is not less than 30,000.