Question

It is believed that the average amount of money spent per U.S. household per week on food is about $98, with standard deviation $10. A random sample of 100 households in a certain affluent community yields a mean weekly food budget of $100. We want to test the hypothesis that the mean weekly food budget for all households in this community is higher than the national average. Are the results significant at the 5% level?

a) No, we should fail to reject H_o.

b) Yes, we should reject H_o.

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Question 5

Based on information from a large insurance company, 67% of all damage liability claims are made by single people under the age of 25. A random sample of 51 claims showed that 43 were made by single people under the age of 25. Does this indicate that the insurance claims of single people under the age of 25 is higher than the national percent reported by the large insurance company? State the null and alternate hypothesis.

a) H_o: p = .84, H_a: p < .84

b) H_o: p = .84, H_a: p > .84

c) H_o: p = .67, H_a: p < .67

d) H_o: p = .67, H_a: p > .67

e) H_o: p = .67, H_a: p ≠ .67

Answer 1

4)

5)

d) H_o: p = .67, H_a: p > .67