At the time she was hired as a server at the restaurant, Beth was told, "You can average
more than $20 a day in tips." Over the first 31 days she was employed, the mean
daily amount of her tips was $21.76, with a standard deviation of $2.35. At the 0.01
significance level, can Beth conclude she is earning more than $20 in tips?
Need all five hypothesis steps and the indication on the normal curve the area of rejection
Denote by mu the average amount Beth is earning a day in tips. Then we can set up the following hypotheses.
Null hypothesis H0: mu=20
Five hypothesis steps and the indication on the normal curve the area of rejection are given.