Question

At the time she was hired as a server at the Grumney Family Restaurant, Beth Brigden was told, “You can average $89 a day in tips.” Assume the population of daily tips is normally distributed with a standard deviation of $2.81. Over the first 40 days she was employed at the restaurant, the mean daily amount of her tips was $92.66. At the 0.01 significance level, can Ms. Brigden conclude that her daily tips average more than $89?

1. State the null hypothesis and the alternate hypothesis.

• H₀: μ ≥ 89; H₁: μ < 89

• H₀: μ >89; H₁: μ = 89

• H₀: μ ≤ 89; H₁: μ > 89

• H₀: μ = 89; H₁: μ ≠ 89

2. State the decision rule.

• Reject H₀ if z > 2.33

• Reject H₁ if z < 2.33

• Reject H₁ if z > 2.33

• Reject H₀ if z < 2.33

3. Compute the value of the test statistic. (Round your answer to 2 decimal places.)

4. What is your decision regarding H₀?

• Reject H₀

• Do not reject H₀

5. What is the p-value? (Round your answer to 4 decimal places.)

Answer 1