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 64 neighborhood restaurants showed a mean price of $12.75 and a standard deviation of $2 for a comparable restaurant meal. The null hypothesis is that the mean cost of restaurant meal is great than or equal to $13.04. The alternative hypothesis is that its mean cost is less than $13.04. Using the sample from the 64 restaurants, what is the p-value?
Here the sample is more than 30. Therefore z test can be used here.
Null hypothesis:
The mean cost of restaurant meal is greater than or equal to $13.04.
Alternative hypothesis:
The mean cost is less than $13.04.
Test statistic:
For this problem,
p-value:
The test is a left tailed test, therefore the p ...
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