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Question 14
A survey during 2013 investigated mean expenditure on bread and on alcohol. The 2013 survey obtained information from 12 144 adults. The survey revealed that the m... show full transcript
Step 1
Answer
To carry out the hypothesis test, we start by stating the null and alternative hypotheses:
Next, we calculate the test statistic using the formula:
Where:
Substituting the values into the formula gives:
Now, we find the critical values for a two-tailed test at the 5% significance level. Looking up values from the t-distribution table or using a calculator, we find that the critical values are approximately ±1.96.
Since the calculated test statistic (6.30) is greater than 1.96, we reject the null hypothesis. This indicates that there is evidence to suggest that the mean expenditure per adult per week on bread changed from 2012 to 2013.
Step 2
Answer
To find the greatest and least sample means for which we would accept the null hypothesis, we use the critical value approach:
We find the acceptance region for the null hypothesis:
For a two-tailed test, the acceptance region is:
Calculating the corresponding upper and lower bounds:
Upper Bound:
Lower Bound:
Calculating the values:
Using a calculator, we find:
Then:
Upper Bound:
Lower Bound:
Thus, the greatest value is approximately 128.24 and the least value is approximately 125.76.
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