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. 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. b. using the sample from the 100 restaurants, what is the p-value? c. at a = .05, what is your conclusion? d. repeat the preceding hypothesis test using the critical value approach

b) 0.0751

c) We cannot afirm whether eating out or dinning in is cheaper

d) do not reject neither.

Questions:

(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.

(b). Using the sample from the 100 restaurants, what is the p -value?

(c). At α = .05 ,what is your conclusion?

(d). Repeat the preceding hypothesis test using the critical value approach

Explanation:

(b)

We use excel function to get the Pz which is .0751

(c). 0.0751 > .05 , We cannot reject the hypotesis. Thus, we can neither say dinning in is more cheap nor eating out is cheaper.

(d). With = 99 , t .05 = −1.66 Reject H 0 if ? ≤ −1.66 −1.45 > −1.66 , do not reject

Degrees of freedom = n − 1 = 99 and Pz of 0.05 = -1.66

Reject when Pz

-1.45 > 1.66 threfore we cannot reject the hypotesis.

dining in

Explanation: