A government report says that the average amount of money spent per US houschold per week on food is about $158. A random sample of 50 households in a small city is selected, and their weekly spending on food is recorded. The sample data
have a mean of $165 and a standard deviation of $32. Is there convincing evidence that the mean
weekly spending on food in this city differs from the
national figure of $158?
(a) State appropriate hypotheses for performing a
significance test in this setting Be sure to define the
parameter of interest.
(b) The distribution of household spending in this
small city is heavily skewed to the right. Explain
why the Normal/Large Sample condition is met in
this case
(c) The Palue of the test is 0.128. Interpret this value.
What conclusion would you make