Lunch at McDonald’s. According to the National Restaurant Association, hamburgers are the number-one selling fast-food item in the United States. An economist studying the fast-food buying habits of Americans paid graduate students to stand outside two suburban Boston McDonald’s restaurants and ask departing customers whether they spent more than $2.25 on hamburger products for their lunch. Twenty answered yes, 50 said no, and 10 refused to answer the question. (Newark Star-Ledger, Mar. 17, 1997.)
a. Apply the sign test to determine (at α = 05); whether the median amount spent for hamburgers at lunch at McDonald’s is less than $2.25.
b. Does your conclusion apply to all Americans who eat lunch at McDonald’s? Justify your answer.
c. What assumptions must hold to ensure the validity of your test in part a?
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