You are required to i. Perform Hypothesis Testing. ii. Provide conclusion. iii. Also illustrate your answer.
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.
These days its all about eating outdoors. People find it convenient to eat at a cafe rather than
having to cook at home. Cooking at home seems like a very difficult task for this generation as
they are busy with their studies, odd jobs and social media. They hardly get time to do all the
groceries and then to keep track of preparing the meals on time.
But going out to eat is not easy but also comes with some costs. If we check the price of making
some kind of food like Daal Gosht by buying Meat, Daal and Spices from the store, the mean
charges come to Rs. 660.
But if we go to a café to eat the same menu, we will have to bear less charges like upto Rs. 549 as
shown by the sample that is collected from 200 different cafés with SD value of Rs. 5
You are required to
i. Perform Hypothesis Testing.
ii. Provide conclusion.
iii. Also illustrate your answer.
iv. What is the Type I error in this situation?
v. What is the Type II error in this situation?
As per our guidelines, we are allowed to answer first three sub-parts only. Thanks
Sample details :
Sample Mean ,
Sample standard deviation , s = 5
Sample size , n = 200 different cafés
Claim to be tested : But if we go to a café to eat the same menu, we will have to bear less charges
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