Question

Scenario 2: A study is performed in a small southern town to determine whether the average weekly grocey bill for a four-person family is significantly less than national average of $185. A simple random sample of 19 weekly grocery bills for four-person families is selected from the town. The data is shown to the right. They suspect from the sample data that the small town's average grocery bill is less than the national average. That is, they want to test the hypotheses: Ho: u 2 $185 and Ha: < $185. Conduct the appropriate hypothesis thest with alpha = 0.05. Show your answers to 10 What is the critical value for this test? (HINT: Use the T.INV function in Excel.) Bill $154.52 $193.99 $110.01 $236.02 $194.28 $178.20 $161.84 $139.27 $214.69 $176.78 $198.18 $180.21 $144.03 $203.30 $190.66 $161.19 $213.89 $159.93 $188.57 11 What is the value of the test statistic for this situation? (Note: You are just using Excel as your calculator here since Excel does not have a one-sample hypothesis test option in the Data Analysis tools.) 12 What is the p-value for this test? (HINT: Use the T.DIST function in Excel.) 13 Yes or No. We should reject the Null Hypothesis.

Please provide excel Formulas. thank you

Answer 1

The null and alternative hypotheses are stated as follows: Ho: u2 $185 Hu<$185 The significance level is 0.05. The sample mean can be obtained using Excel formula = AVERAGE (A1:A19) fx =AVERAGE(A1:A19) D Ε 178.9242! The sample standard deviation can be obtained using Excel formula = STED.S (A1:A19) fic =STDEV.S(A1:A19) D E 30.30307) F 10. The critical value is as follows: fx =T.INV(0.05,18) -1.73406!