Question

Question 8 According to AARP, in 2008, 49% of all annual expenditure on restaurant food was by Americans age 50+. In fact AARP claims the average annual expenditure for Americans age 50+ on restaurant food in 2008 was $1875. Suppose a 2015 study randomly sampled 42 Americans age 50+ and found an average annual expenditure on restaurant food of $2115 with a standard deviation of $600. Is there reason to believe that the average annual expenditure for Americans age 50+ on restaurant food has increased since 2008 at α=.005? For the hypothesis stated above, what is the decision? a. Reject H0 because the test statistic is to the right of the positive critical value b. Fail to reject H0 because P-value > α c. None of the answers is correct d. Fail to reject H0 because the test statistic is to the right of the positive critical value e. Reject H0 because P-value > α

Answer 1

Hypothesis : Vs  

The test statistic is ,

The critical value is ,

The Excel function is , =TINV(2*0.05,41)

The p-value is ,

The Excel function is , =TDIST(2.5923,41,1)

Decision : Reject Ho because the

i.e. Reject Ho because the test statistic is to the right of the positive critical value.

Or Reject Ho because p-value = 0.0066 <