Chapter 9.4, Problem 27E

Which is cheaper: eating out or dining in? The mean cost of a flank steak, broccoli, and rice bought at the grocery store is $13.04 (Money.msn website, November 7, 2012). A sample of 100 neighborhood restaurants showed a mean price of $12.75 and a standard deviation of $2 for a comparable restaurant meal.

1. a. Develop appropriate hypotheses for a test to determine whether the sample data support the conclusion that the mean cost of a restaurant meal is less than fixing a comparable meal at home.
2. b. Using the sample from the 100 restaurants, what is the p-value?
3. c. At α = .05, what is your conclusion?
4. d. Repeat the preceding hypothesis test using the critical value approach.