  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?

Question
1. 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?

Step 1

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:

Step 2

For this problem,

Step 3

p-value:

The test is a left tailed test, therefore the p ...

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Hypothesis Testing 