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).4.473.142.443.954.374.524.203.694.653.803.383.83The 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 usingα = 0.05.(Hint: See Example 12.12.)State the appropriate null and alternative hypotheses.H0: μ < 5.04Ha: μ > 5.04H0: μ = 5.04Ha: μ < 5.04 H0: μ = 5.04Ha: μ > 5.04H0: μ > 5.04Ha: μ < 5.04H0: μ = 5.04Ha: μ ≠ 5.04Find the test statistic and P-value. (Use a table or technology. Round your test statistic to one decimal place and your P-value to three decimal places.)t= P-value =State the conclusion in the problem context.We fail to reject H0. We do not have convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price.We fail to reject H0. We have convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price. We reject H0. We do not have convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price.We reject H0. We have convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price.

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Description: 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).4.473.142.443

From the provided information, Sample size (n) = 12 Level of significance (α) = 0.05 The mean price…

Answered: The Economist collects data each year…

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ISBN:9781119256830

Author:Amos Gilat

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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).

4.47	3.14	2.44	3.95	4.37	4.52
4.20	3.69	4.65	3.80	3.38	3.83

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.

(Hint: See Example 12.12.)

State the appropriate null and alternative hypotheses.

H₀: μ < 5.04

H_a: μ > 5.04

H₀: μ = 5.04

H_a: μ < 5.04

H₀: μ = 5.04

H_a: μ > 5.04

H₀: μ > 5.04

H_a: μ < 5.04

H₀: μ = 5.04

H_a: μ ≠ 5.04

Find the test statistic and P-value. (Use a table or technology. Round your test statistic to one decimal place and your P-value to three decimal places.)

t= P-value =

State the conclusion in the problem context.

We fail to reject H₀. We do not have convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price.We fail to reject H₀. We have convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price. We reject H₀. We do not have convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price.We reject H₀. We have convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price.

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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