AThe Economist collects data each year on the price of a Big Mac in various countries around the world. A sample of McDonald’s restaurants in Europe in July 2016 resulted in the following Big Mac prices (after conversion to U.S. dollars):4.44 3.15 2.42 3.96 4.35 4.51 4.17 3.69 4.62 3.80 3.36 3.85The mean price of a Big Mac in the U.S. in July 2016 was $5.04. For purposes of this exercise, you canassume it is reasonable to regard the sample as representative of European McDonald’s restaurants.Does the sample provide convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price? Test the relevant hypotheses using α = 0.05Q= test type (hypothesis or estimation) S= data type (sample or experiment)T= categorical or numerical N= Number of samples or treatments **Analysis of Big Mac Prices in Europe****The Economical Analysis** The Economist collects data each year on the price of a Big Mac in various countries around the world. A sample of McDonald's restaurants in Europe in July 2016 resulted in the following Big Mac prices (after conversion to U.S. dollars):4.44, 3.15, 2.42, 3.96, 4.35, 4.51, 4.17, 3.69, 4.62, 3.80, 3.36, 3.85The mean price of a Big Mac in the U.S. in July 2016 was $5.04. For purposes of this exercise, you can assume it is reasonable to regard the sample as representative of European McDonald's restaurants. Does the sample provide convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price? Test the relevant hypotheses using α = 0.05.**Hypotheses:****Method:** - Formulate Hypotheses - (Q) : - (S) : - (T) : - (N) : **Check:****Calculate:****Communicate:**---This exercise helps to understand hypothesis testing using real-world economic data, emphasizing statistical analysis in a global market context.

Given, The Economist collects data each year on the price of a Big Mac in various countries around the world. A random sample of McDonald’s restaurants in Europe were surveyed in July 2016 asking about their Big Mac price. The surveyresulted in the following Big Mac prices (after conversion to U.S. dollars):4.44 3.15 2.42 3.96 4.35 4.51 4.17 3.69 4.62 3.80 3.36 3.85The mean price of a Big Mac in the U.S. in July 2016 was $5.04. Does the sample provide convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price? Let X = Price of Big Mac (in U.S. dollars) Given claim is that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price. The null and alternative hypothesis is given by; Here, the mean of sample has to be checked and population standard deviation is not known. it is appropriate to use one sample t test. Q:This is a hypothesis test. S:This is a sample. T:It contains numerical data. N:It has number of sample.Check: Here, level of significance is 0.05. Number of sample is 12 Degrees of freedom: df=n-1 =12-1 =11 Critical value: The t critical value for 0.05 level of significance and degrees of freedom at 11 is obtained using excel formula "T.INV(0.05,11) is -1.7959. Decision rule: If test statistic value is less than critical value reject the null hypothesis otherwise fail to reject the null hypothesis.Calculation: The table of calculations is provided below; The mean and standard deviation of given sample is computed as follows:Test statistic: Thus, the test statistic value is -6.3601. Conclusion: Here, the test statistic value is less than the critical value. That is -6.3601<-1.7979. Therefore, reject the null hypothesis. There is enough evidence to claim that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price.

Answered: The Economist collects data each year…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

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AThe Economist collects data each year on the price of a Big Mac in various countries around the world. A sample of McDonald’s restaurants in Europe in July 2016 resulted in the following Big Mac prices (after conversion to U.S. dollars): 4.44 3.15 2.42 3.96 4.35 4.51 4.17 3.69 4.62 3.80 3.36 3.85 The mean price of a Big Mac in the U.S. in July 2016 was $5.04. For purposes of this exercise, you can assume it is reasonable to regard the sample as representative of European McDonald’s restaurants. Does the sample provide convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price? Test the relevant hypotheses using α = 0.05 Q= test type (hypothesis or estimation) S= data type (sample or experiment) T= categorical or numerical N= Number of samples or treatments

**Analysis of Big Mac Prices in Europe**

**The Economical Analysis**
The Economist collects data each year on the price of a Big Mac in various countries around the world. A sample of McDonald's restaurants in Europe in July 2016 resulted in the following Big Mac prices (after conversion to U.S. dollars):

4.44, 3.15, 2.42, 3.96, 4.35, 4.51, 4.17, 3.69, 4.62, 3.80, 3.36, 3.85

The mean price of a Big Mac in the U.S. in July 2016 was $5.04. For purposes of this exercise, you can assume it is reasonable to regard the sample as representative of European McDonald's restaurants. Does the sample provide convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price? Test the relevant hypotheses using α = 0.05.

**Hypotheses:**

**Method:**
- Formulate Hypotheses
- (Q) :
- (S) :
- (T) :
- (N) :

**Check:**

**Calculate:**

**Communicate:**

---
This exercise helps to understand hypothesis testing using real-world economic data, emphasizing statistical analysis in a global market context.

Definition Definition Measure of central tendency that is the average of a given data set. The mean value is evaluated as the quotient of the sum of all observations by the sample size. The mean, in contrast to a median, is affected by extreme values. Very large or very small values can distract the mean from the center of the data. Arithmetic mean: The most common type of mean is the arithmetic mean. It is evaluated using the formula: μ = 1 N ∑ i = 1 N x i Other types of means are the geometric mean, logarithmic mean, and harmonic mean. Geometric mean: The nth root of the product of n observations from a data set is defined as the geometric mean of the set: G = x 1 x 2 ... x n n Logarithmic mean: The difference of the natural logarithms of the two numbers, divided by the difference between the numbers is the logarithmic mean of the two numbers. The logarithmic mean is used particularly in heat transfer and mass transfer. ln x 2 − ln x 1 x 2 − x 1 Harmonic mean: The inverse of the arithmetic mean of the inverses of all the numbers in a data set is the harmonic mean of the data. 1 1 x 1 + 1 x 2 + ...

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