Which is cheaper: eating out or dining in? The mean cost of a flank steak, broccoli, and rice bought at the grocery store is $13.04 (Money. msn website, November 7, 2012). A sample of 100 neighborhood restaurants showed a mean price of $12.75 and a standard deviation of $2 for a comparable restaurant meal. Use LaTeX: / alphaα = 0.05 as the level of significance. a. Develop appropriate hypotheses for a test to determine whether the sample data support the conclusion that the mean cost of a restaurant meal is less than fixing a comparable meal at home.

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Business

Deborah Richard

14 December, 02:05

Which is cheaper: eating out or dining in? The mean cost of a flank steak, broccoli, and rice bought at the grocery store is $13.04 (Money. msn website, November 7, 2012). A sample of 100 neighborhood restaurants showed a mean price of $12.75 and a standard deviation of $2 for a comparable restaurant meal. Use LaTeX: / alphaα = 0.05 as the level of significance. a. Develop appropriate hypotheses for a test to determine whether the sample data support the conclusion that the mean cost of a restaurant meal is less than fixing a comparable meal at home.

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Nathan Cannon · Answer 1

Null hypothesis: The mean price of restaurant meal is the same as fixing a comparable meal at home.

Alternate hypothesis: The mean price of restaurant meal is less than fixing a comparable meal at home.

Explanation:

A null hypothesis is a statement from a population parameter which is either rejected or accepted (fail to reject) upon testing.

An alternate hypothesis is also a statement from the population parameter that negates the null hypothesis and is accepted if the null hypothesis is proven false.