Explore BrainMass

Explore BrainMass

    One Sample Hypothesis Testing on Average Weekly Tips

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    At the time she was hired as a server at the Grumney Family Restaurant, Beth Brigden was told, "You can average $72 a day in tips." Assume the population of daily tips is normally distributed with a standard deviation of $2.45. Over the first 34 days she was employed at the restaurant, the mean daily amount of her tips was $73.07. At the .10 significance level, can Ms. Brigden conclude that her daily tips average more than $72?

    (a) State the null hypothesis and the alternate hypothesis.

    (b) State the decision rule.

    (c) Compute the value of the test statistic. (Round your answer to 2 decimal places.)

    (d) What is your decision regarding H0?

    (e) What is the p-value? (Round your answer to 4 decimal places.)

    © BrainMass Inc. brainmass.com March 5, 2021, 12:33 am ad1c9bdddf
    https://brainmass.com/statistics/hypothesis-testing/sample-hypothesis-testing-average-weekly-tips-516204

    Solution Preview

    (a) H0: mu= 72 ; H1: mu > 72
    Reason: we are testing daily tips average more than ...

    Solution Summary

    This solution provides the null and alternative hypothesis. It also calculates the value of test statistic to compare to the p-value to make a decision on either accepting or rejecting the null hypothesis.

    $2.49

    ADVERTISEMENT