Question

Having trouble with this practice problem!

According to AARP, in 2008, 49% of all annual expenditure on restaurant food was by Americans age 50+. In fact AARP claims the average annual expenditure for Americans age 50+ on restaurant food in 2008 was $1875. Suppose a 2015 study randomly sampled 42 Americans age 50+ and found an average annual expenditure on restaurant food of $2115 with a standard deviation of $600. Is there reason to believe that the average annual expenditure for Americans age 50+ on restaurant food has increased since 2008 at α=.005?

For the hypothesis stated above, what is the null hypothesis?

	a.	p > 0.50
	b.	μ ≤ 2115
	c.	p ≤ 0.49
	d.	μ > 1875
	e.	None of the answers is correct

Answer 1

Answer: e) None of the answers is correct

Explanation: The null hypothesis should be:

H0: μ ≤ 1875