Question

A recent report indicated that families in a certain country typically spend about $175 per week on groceries. To investigate whether families in a certain city typically spend more than $175 per week, an economist selected a random sample of 500 families in the city and found the sample mean to be $176.24. With all conditions for inference met, a hypothesis test resulted in a pp-value of 0.0021.
At the significance level of α=0.05α=0.05, which of the following is a correct conclusion?
A. The pp-value is less than 0.05, and the null hypothesis is rejected. There is convincing statistical evidence that the mean is greater than $175.
The pp-value is less than 0.05, and the null hypothesis is not rejected. There is convincing statistical evidence that the mean is greater than $175.
B. The pp-value is less than 0.05, and the null hypothesis is not rejected. There is not convincing statistical evidence that the mean is greater than $175.
C. The pp-value is greater than 0.05, and the null hypothesis is rejected. There is convincing statistical evidence that the mean is greater than $175.
D. The pp-value is greater than 0.05, and the null hypothesis is not rejected. There is not convincing statistical evidence that the mean is greater than $175.

Answer 1

Answer:

Option B

Explanation:

Null hypothesis: ∪ = $175

Alternative hypothesis: ∪ₐ ≠ $175

With a pp value of 0.0021 which is less than value at the level of significance, the null hypothesis is not rejected as there is no sufficient statistical evidence that the mean is greater than $175.