At the time she was hired as a server at the Grumney Family Restaurant, Beth Brigden was told, “You can average $80 a day in tips.” Assume the population of daily tips is normally distributed with a standard deviation of $2.81. Over the first 42 days she was employed at the restaurant, the mean daily amount of her tips was $82.74. At the 0.10 significance level, can Ms. Brigden conclude that her daily tips average more than $80?
a. State the null hypothesis and the alternate hypothesis.
multiple choice 1
H0: μ ≥ 80; H1: μ < 80
H0: μ >80; H1: μ = 80
H0: μ ≤ 80; H1: μ > 80
H0: μ = 80; H1: μ ≠ 80
b. State the decision rule.
multiple choice 2
Reject H0 if z > 1.28
Reject H1 if z < 1.28
Reject H1 if z > 1.28
Reject H0 if z < 1.28
