At the time she was hired as a server at the Grumney Family Restaurant, Beth Bri

Question

At the time she was hired as a server at the Grumney Family Restaurant, Beth Brigden was told, “You can average $83 a day in tips.” Assume the population of daily tips is normally distributed with a standard deviation of $4.07. Over the first 45 days she was employed at the restaurant, the mean daily amount of her tips was $84.86. At the 0.05 significance level, can Ms. Brigden conclude that her daily tips average more than $83?

  

  

  

  

   

  

a. State the null hypothesis and the alternate hypothesis. H0: >83 ; H1: = 83 H0: 83 ; H1: < 83 H0: 83 ; H1: > 83 H0: = 83 ; H1: 83

Explanation / Answer

a. H0: 83 ; H1: > 83

b. Reject H0, if z>critical value=1.65

c. Test statistics z=xbar-mu/(sd/sqrt(n))=84.86-83/(4.07/sqrt(45))=3.06

d. Reject H0

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