Answer to Question #28769 in Microeconomics for Lesya

Question

According to data released by the United State Bureau of Labor, the average price of a half-gallon of ice cream in 1996 was $2.86. The monthly averages for the price of a half-gallon of ice cream at 12 stores in your town in 1996 are shown here:
$2.87;$2.93;$3.13;$2.92;$2.99;$3.01;$3.02;$3.01;$2.93;$3.08;$2.67;$2.89
Assume that the ice cream prices are normally distributed with a standard deviation of $0.10.
a) Set up the null and the alternative hypotheses to test whether the average price of a half-gallon of ice cream in your town is different from the 1996 national average.
b) Complete the remaining hypothesis testing steps using a=0.05.
c) Find the p value.
d) What can you conclude about the average price of a half-gallon of ice cream in your town?