Annual per capita consumption of milk is 21.6 gallons (Statistical Abstract of the United States: 2006). Being from the Midwest, you believe milk consumption is higher there and wish to support your opinion. A sample of 16 individuals from the Midwestern town of Webster City showed a sample mean annual consumption of 24.1 gallons with a sample standard deviations = 4.8.
a. Develop a hypothesis test that can be used to determine whether the mean annual consumption in Webster City is higher than the national mean.
b. What is a point estimate of the difference between mean annual consumption in Webster City and the national mean?
c. At a=.05, test for a significant difference. What is your conclusion?
The solution describes a testing of hypothesis problem.