At the time she was hired as a server at the Grumney Family Restaurant, Beth Brigden was told, “You can average $77 a day in tips.” Assume the population of daily tips is normally distributed with a standard deviation of $4.48. Over the first 39 days she was employed at the restaurant, the mean daily amount of her tips was $78.46. At the 0.01 significance level, can Ms. Brigden conclude that her daily tips average more than $77?
At the time she was hired as a server at the Grumney Family Restaurant, Beth Brigden was told, “You can average $77 a day in tips.” Assume the population of daily tips is
a. State the null hypothesis and the alternate hypothesis.
multiple choice 1
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H0: μ ≥ 77; H1: μ < 77
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H0: μ >77; H1: μ = 77
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H0: μ ≤ 77; H1: μ > 77
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H0: μ = 77; H1: μ ≠ 77
b. State the decision rule.
multiple choice 2
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Reject H0 if z > 2.33
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Reject H1 if z < 2.33
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Reject H1 if z > 2.33
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Reject H0 if z < 2.33
c. Compute the value of the test statistic. (Round your answer to 2 decimal places.)
d. What is your decision regarding H0?
multiple choice 3
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Do not reject H0
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Reject H0
e. What is the p-value? (Round your answer to 4 decimal places.)
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