According to a recent survey of the 23,000 funeral homes of a certain nation, fu

Question

According to a recent survey of the 23,000 funeral homes of a certain nation, funeral homes collected an average of $6, 700 per full-service funeral last year. A random sample of 36 funeral homes reported revenue data for the current year. Among other measures, each reported its average fee for a full-service funeral These data (in thousands of dollars) are shown in the accompanying table. Complete parts a through c below. Click the icon to view the data table. a. What are the appropriate null and alternative hypotheses to test whether the average full-service fee of funeral homes this year exceeds $6, 700? A. H_0: mu = 6.7 H_a: mu notequalto 6.7 Ho: B. H_0: mu = 6.7 H_a: mu 6.7 b. Conduct the test at alpha = 0.01. Do the sample data provide sufficient evidence to conclude that the average fee this year is higher than last year? Find the test statistic. z = (Round to two decimal places as needed.) Find the p-value. p-value = (Round to three decimal places as needed.) State the result of this test. A. H_0 is not rejected. There is insufficient evidence at the alpha = 0.01 level of significance to conclude that the average fee this year is higher than last year. B. H_0 is rejected. There is sufficient evidence at the alpha = 0.01 level of significance to conclude that the average fee this year is higher than last year. H_0 is rejected. There is insufficient evidence at the alpha = 0.01 level of significance to conclude that the average fee this year is higher than last year. D. Ha is not rejected There is sufficient evidence at the alpha = 0.01 level of significance to conclude that the average fee this year is higher than last year. c. In conducting the test, was it necessary to assume that the population of average full-service fees was normally distributed? Justify your answer. A. No, because the sample size is greater than 30. B. No, because the sample size is less than 40. C. Yes, because the sample size is greater than 30. D. Yes, because the sample size is less than 40.

Explanation / Answer

The statistical software output for this problem is:

One sample Z hypothesis test:
: Mean of variable
H0 : = 6.7
HA : > 6.7
Standard deviation not specified.

Hypothesis test results:

Hence,

a) Option D is correct.

b) z = 1.01

p - value = 0.156

c) Option A is correct.

d) Option A is correct.

Variable n Sample Mean Std. Err. Z-Stat P-value var3 36 6.9277778 0.2250436 1.0121496 0.1557

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