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 survey 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. 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?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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 survey
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 July 2016 price of a Big Mac in Europe is less than the reported U.S. price?
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