Question

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. A sample of 100 neighborhood restaurants showed a mean price of $12.60 and a standard deviation of $2 for a comparable restaurant meal.

(a)	Choose the 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.
	H0: - Select your answer -µ > 13.04µ ≤ 13.04µ < 13.04µ ≥ 13.04Item 1 Ha: - Select your answer -µ > 13.04µ ≤ 13.04µ < 13.04µ ≥ 13.04Item 2
(b)	Using the sample from the 100 restaurants, what is the p value? If required, round your answer to four decimal places.
(c)	At α = 0.05, what is your conclusion?
	We - Select your answer -rejectfail to rejectItem 4 the null hypothesis. We - Select your answer -cancannotItem 5 conclude that the cost of a restaurant meal is significantly cheaper than a comparable meal fixed at home.
	Please show solution using excel

Answer 1

(a) The Hypothesis:

H0: $\mu \geq$ 13.04

Ha: $\mu <$ 13.04

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(b) To get the p value, we need the test statistic

Although population standard deviation is not known n is very large and we use the z test.

====“_120–13.01 -2 V100

The p value (left Tail) at z = -2.2, is 0.0139

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(c) Since p value is < 0.05, Reject H0.

We Reject the null Hypothesis. We can conclude that the cost of a restaurant meal is significantly cheaper than a comparable meal fixed at home.

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