Question

According to last year’s report, a filipino household spends an average of P400/day for food. Suppose you took a sample of 25 households. You determined how much each household spent for the food daily and the results revealed a mean of P380 and a standard deviation of P21.50. with 99% confidence what would be your conclusion

Answer 1

One sample t-est.

$H_0:\mu=400.$

$H_a:\mu\ne400.$

Degrees of freedom: $df=25-1=24.$

Test statistic: $t=\frac{380-400}{\frac{21.50}{\sqrt{25}}}=-4.65.$

P-value: $p=P(T<-4.65)=0.0001.$

Since the P-value is less than 0.01, reject the null hypothesis.