Question

The mean cost of the ingredients of a chicken permesan meal bought at the grocery store is $15. Prices from a sample of 50 restaurants for a comparable meal is shown in spreadsheet PRICES. At an alpha level of .05, can we say that eating chicken parmensan at a restaurant is cheaper? Formulate your hypotheses and solve the problem.

12.7
12.31
13.51
13.97
9.24
11.4
13.73
13.47
11.62
11.69
14.32
12.42
18.49
11.66
16.59
14.62
14.77
14.06
14.66
9.22
12.64
17.25
11.31
12.96
16.2
12.65
11.11
11.46
15.05
13.56
13.5
13.29
16.27
14.73
14.18
14.43
13.35
12.08
11.64
10.81
12.59
14.83
13.16
9.75
12.16
10.75
16.83
11.7
14.44
9.68

What is the P Value:

A. P < .001

B. .02

C. .07

D. 12

Answer 1

For testing hypothesis, we need to use T-test for One Population Mean.

First, we need to calculate mean and standard deviation of prices. Excel has been used to calculate mean and standard deviation:

Mean = 13.1762

Std. Dev. = 2.0622

Following are the steps followed for hypothesis testing:

=

P-value corresponding to t = -6.254 and df = 50 -1 = 49 is less than 0.00001 (Obtained using p-value calculator. Screenshot given below)

(4) Decision about the null hypothesis

Since p-value is less than alpha level of 0.05, we reject null hypothesis.

(5) Conclusion

Therefore, at the 0.05 significance level, there is enough evidence to claim that eating chicken parmensan at a restaurant is cheaper.

Regarding P-value (Option A is correct)