The Economist collects data each year on the price of a Big Mac in various countries around the world. A sample of McDonald's restaurants in Europe in July 2016 resulted in the following Big Mac prices (after conversion to U.S. dollars). 4.47 3.14 2.44 3.95 4.37 4.52 4.20 3.69 4.65 3.80 3.38 3.83 The mean price of a Big Mac in the U.S. in July 2016 was $5.04. For purposes of this exercise, you can assume it is reasonable to regard the sample as representative of European McDonald's restaurants. Does the sample provide convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price? Test the relevant hypotheses using α = 0.05.
The Economist collects data each year on the price of a Big Mac in various countries around the world. A sample of McDonald's restaurants in Europe in July 2016 resulted in the following Big Mac prices (after conversion to U.S. dollars). 4.47 3.14 2.44 3.95 4.37 4.52 4.20 3.69 4.65 3.80 3.38 3.83 The mean price of a Big Mac in the U.S. in July 2016 was $5.04. For purposes of this exercise, you can assume it is reasonable to regard the sample as representative of European McDonald's restaurants. Does the sample provide convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price? Test the relevant hypotheses using α = 0.05.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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The Economist collects data each year on the price of a Big Mac in various countries around the world. A sample of McDonald's restaurants in Europe in July 2016 resulted in the following Big Mac prices (after conversion to U.S. dollars).
| 4.47 | 3.14 | 2.44 | 3.95 | 4.37 | 4.52 |
| 4.20 | 3.69 | 4.65 | 3.80 | 3.38 | 3.83 |
The mean price of a Big Mac in the U.S. in July 2016 was $5.04. For purposes of this exercise, you can assume it is reasonable to regard the sample as representative of European McDonald's restaurants. Does the sample provide convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price? Test the relevant hypotheses using
α = 0.05.
(Hint: See Example 12.12.)State the appropriate null and alternative hypotheses.
H0: μ < 5.04
Ha: μ > 5.04
H0: μ = 5.04
Ha: μ < 5.04
H0: μ = 5.04
Ha: μ > 5.04
H0: μ > 5.04
Ha: μ < 5.04
H0: μ = 5.04
Ha: μ ≠ 5.04
Find the test statistic and P-value. (Use a table or technology. Round your test statistic to one decimal place and your P-value to three decimal places.)
t= P-value =
State the conclusion in the problem context.
We fail to reject H0. We do not have convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price.We fail to reject H0. We have convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price. We reject H0. We do not have convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price.We reject H0. We have convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price.
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