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A study is performed in a large southern town to determine whether the average weekly grocery bill per four-person family in the town is significantly different from the national average. The national average grocery bill is $100. A random sample of 30 families is taken in the town, and the mean is found to be 103.91 with a standard deviation of 8.57.
For each item below, please show your work and/or explain your reasoning.
a) Identify the null and alternative hypotheses for this situation.
b) Assuming a 0.05 level of significance, compute the appropriate test statistic.
c) Can you reject the null hypothesis? Explain/justify your response using numbers and words.
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