A restaurant association says the typical household in the U.S. spends a mean of $2600 per...

A restaurant association says the typical household in the U.S. spends a mean of $2600 per year on food away from home. An author of a national travel publication tests this claim and calculated a p-value of 0.8215. What conclusion can this author make at the 0.05 level of significance?

Expert Solution

It is required to test the claim that the typical household in the U.S. spends a mean of $2600 per year on food away from home

Let be the population mean US household spend on food away from home

Then, the null and alternative hypotheses are

p-value = 0.8215

Level of significance

0.8215 > 0.05

that is, p-value > level of significance

Hence, the null hypothesis is not rejected

There does not exist sufficient statistical evidence at 0.05 level of significance to show that the mean amount spent by a typical household in US on food away from home is not equal to $2600

That is,

The claim is true and the typical household in the U.S. does spend a mean of $2600 per year on food away from home

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orchestra answered 2 years ago

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