Question

In: Statistics and Probability

A restaurant that bills its house account monthly is concerned that the average monthly bill exceeds...

A restaurant that bills its house account monthly is concerned that the average monthly bill exceeds $200 per account. A random sample of 16 accounts is selected, resulting in a sample mean of $210 and a standard deviation of 20. Using a level of significance of 0.01, can we conclude that the average monthly bill is greater than $200 per account?

1. What is Ho and H1?

2. What is the Decision Rule?

3. What is the computed value of the test statistic?

4. What is the decision regarding Ho? What can we conclude?

5. Compute and Interpret the p-value.

Expert Solution

Solution :

= 200

= 210

=20

n = 16

This is the right tailed test .

The null and alternative hypothesis is ,

H0 : = 200

Ha : 200

Test statistic =t

= ( - ) / / n

= (210 -200 ) / 20 / 16

= 2

Test statistic =t = 2

P-value =0.0320

= 0.01

P-value >

0.032 > 0.01

Fail to reject the null hypothesis .

There is insufficient evidence to suggest that

orchestra answered 2 years ago

A restaurant wants to estimate the average bill paid by a party of two for dinner...

A restaurant wants to estimate the average bill paid by a party of two for dinner (service hours after 5 p.m.) They take a random sample of 100 bills and find that they average $80 with a standard deviation of $40. In making an 80% confidence interval for the parameter of interest, they should get a margin of error of about ± $80 ± $50 ± $10 ± $5 A random sample of 900 homeowners in Centre County is taken...

QUESTION #1: The data to the right show the average monthly utility bills for a random...

QUESTION #1: The data to the right show the average monthly utility bills for a random sample of households in City A and for a random sample of households in City B. City A City B Sample mean $358.41 $386.55 Sample size 33 39 Population standard deviation 0$47 $51 a. a. Identify the null and alternative hypotheses. Let population 1 = monthly utility bills from City A and let population 2 = monthly utility bills from City B. b. what...

Business students want to predict the average customer tip from an average customer’s restaurant bill. They...

Business students want to predict the average customer tip from an average customer’s restaurant bill. They have collected data from five customers. The results are listed below: Customer Bill Tip 1 78 14.50 2 33 5.50 3 64 12 4 55 10.5 5 115 22 Develop a regression model to predict the tip amount based on the customer bill amount. B. Calculate the predicted tip (Y value), if x=82.

The average monthly cable bill in 2016 has been reported to be $92. Assume monthly cable...

The average monthly cable bill in 2016 has been reported to be $92. Assume monthly cable bills follow a normal distribution with a standard deviation of $9.50. a. What is the probability that a randomly selected bill will be 1. less than $90? 2. less than $100? 3. exactly $100? 4. between $85 and $95? Which monthly cable bill represents the 55th percentile?

The average monthly electric bill of a random sample of 256 residents of a city is...

The average monthly electric bill of a random sample of 256 residents of a city is $90 with a standard deviation of $24. Construct a 95% confidence interval for the mean monthly electric bills of all residents. (Round to two decimal places) [Answer, Answer] Construct a 99% confidence interval for the mean monthly electric bills of all residents. (Round to two decimal places) [Answer, Answer]

The average monthly insurance bill for a college student is $32.79. A sample of 50 UD...

The average monthly insurance bill for a college student is $32.79. A sample of 50 UD students finds that the pay $30.63. Using a population standard deviation of $5.60 and an alpha of 0.01 develop and test a Ho and Ha for this scenario and state your conclusion at the appropriate conﬁdence level, in context, and in terms of the alternative hypothesis. You can use the p-value approach or the critical value approach

Narrative 3: Your Bill Paying Process Write a narrative describing how you pay your monthly bills....

Narrative 3: Your Bill Paying Process Write a narrative describing how you pay your monthly bills. Make sure to include all of the steps from receipt of the amount owed to the deduction for the payment to the vendor clearing your checking account. 1. Use the narrative to prepare a table of entities and activities. 2. Use the narrative to draw a context diagram. 3. Use narrative to prepare a logical DFD.

The average take-out order size for Curry House restaurant is shown. Is average order size more...

The average take-out order size for Curry House restaurant is shown. Is average order size more on Saturday Night than Friday Night? α = 0.1 Friday Night Saturday Night Average Order Size $32.30 $37.60 Standard Deviation $3.3 $4.2 Number of Orders Sampled 17 15 Ho:_____________ Ha:_____________ Test Statistics: _______________________ Decision Rule: _______________________ Decision: _____________________ Interpretation: ___________________

According to a report by Scarborough Research, the average monthly household cellular phone bill is $73....

According to a report by Scarborough Research, the average monthly household cellular phone bill is $73. Suppose local monthly household bills are normally distributed with a standard deviation of $11.35. (a) What is the probability that a randomly selected monthly cellphone bill is between $60 and $74? (b) What is the probability that a randomly selected monthly cellphone bill is between $79 and $88? (c) What is the probability that a randomly selected monthly cellphone bill is no more than...

Installing Tesla solar panels in a house costs $18,000. It is expected that the average monthly...

Installing Tesla solar panels in a house costs $18,000. It is expected that the average monthly savings will be 1,000 kWh per month. Assuming that the utility company charges 0.2 per $/kWhr. What is the Present worth of this investment for i=6% and N=15 years? A different approach could be to install energy efficient windows and enhance the insulation for $12,000, which would yield average monthly savings of 700 kWh per month. Assuming the same interest rate and time span....