Test the appropriate hypotheses. Use the p-value method here. Annual per capita consumption of milk is 21.6 gallons. A sample of 16 individuals from the midwestern town of Webster City showed a sample mean annual consumption of 24.1 gallons with a standard deviation of s=4.8. Develop a hypothesis test that can be used to determine whether the mean annual consumption in Webster City equals to the national mean. Hint: Notice that n=16<30 hence you need to use the t-table. Hence, locate the probability for one (right) tail. You won't get one single value, but a range of possible values. Then multiply it by two (to take into account the left tail) and compare to 0.05. a. What is a point estimate of the difference between mean annual consumption in Webster City and the national mean? 2.083 b. At a =.05, test for a significant difference. What is your conclusion? Reject ¶

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**Hypothesis Testing Using the p-Value Method**

**Scenario:**

The annual per capita consumption of milk is reported to be 21.6 gallons nationwide. A sample of 16 individuals from the midwestern town of Webster City reveals a sample mean annual consumption of 24.1 gallons with a standard deviation of 4.8. The goal is to develop a hypothesis test to determine if the mean annual consumption in Webster City equals the national mean.

**Step-by-Step Solution:**

**1. Formulate the Hypotheses:**

- **Null Hypothesis (H0):** The mean annual milk consumption in Webster City is equal to the national mean.
  \[
  H_0: \mu = 21.6
  \]
- **Alternative Hypothesis (H1):** The mean annual milk consumption in Webster City is not equal to the national mean.
  \[
  H_1: \mu \neq 21.6
  \]

**2. Information and Calculations:**

- Sample size (n): 16
- Sample mean (\(\bar{x}\)): 24.1
- Population mean (\(\mu\)): 21.6
- Standard deviation (s): 4.8

**Note:** Since \( n < 30 \), a t-test is appropriate, and we refer to the t-distribution.

**3. Calculate Point Estimate:**
What is the point estimate of the difference between Webster City's mean annual consumption and the national mean?

\[
\text{Point Estimate} = \bar{x} - \mu = 24.1 - 21.6 = 2.083
\]

**4. Test the Significance:**

Using α = 0.05, we need to locate the critical value from the t-distribution table and compute the test statistic. Given that \( n=16 \), degrees of freedom (df) are \( n-1 = 15 \).

**a. Compute the test statistic (t):**

\[
t = \frac{\bar{x} - \mu}{s / \sqrt{n}} = \frac{24.1 - 21.6}{4.8 / \sqrt{16}} = \frac{2.5}{1.2} \approx 2.083
\]

**b. Determine the p-value:**

Using t-distribution tables or software for \( df = 15
Transcribed Image Text:**Hypothesis Testing Using the p-Value Method** **Scenario:** The annual per capita consumption of milk is reported to be 21.6 gallons nationwide. A sample of 16 individuals from the midwestern town of Webster City reveals a sample mean annual consumption of 24.1 gallons with a standard deviation of 4.8. The goal is to develop a hypothesis test to determine if the mean annual consumption in Webster City equals the national mean. **Step-by-Step Solution:** **1. Formulate the Hypotheses:** - **Null Hypothesis (H0):** The mean annual milk consumption in Webster City is equal to the national mean. \[ H_0: \mu = 21.6 \] - **Alternative Hypothesis (H1):** The mean annual milk consumption in Webster City is not equal to the national mean. \[ H_1: \mu \neq 21.6 \] **2. Information and Calculations:** - Sample size (n): 16 - Sample mean (\(\bar{x}\)): 24.1 - Population mean (\(\mu\)): 21.6 - Standard deviation (s): 4.8 **Note:** Since \( n < 30 \), a t-test is appropriate, and we refer to the t-distribution. **3. Calculate Point Estimate:** What is the point estimate of the difference between Webster City's mean annual consumption and the national mean? \[ \text{Point Estimate} = \bar{x} - \mu = 24.1 - 21.6 = 2.083 \] **4. Test the Significance:** Using α = 0.05, we need to locate the critical value from the t-distribution table and compute the test statistic. Given that \( n=16 \), degrees of freedom (df) are \( n-1 = 15 \). **a. Compute the test statistic (t):** \[ t = \frac{\bar{x} - \mu}{s / \sqrt{n}} = \frac{24.1 - 21.6}{4.8 / \sqrt{16}} = \frac{2.5}{1.2} \approx 2.083 \] **b. Determine the p-value:** Using t-distribution tables or software for \( df = 15
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