State the decision rule for .05 significance level

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The cost of weddings in the United States has skyrocketed in recent years. As a result many couples are opting to have their weddings in the Caribbean. A Caribbean vacation resort recently advertised in Bride Magazine that the cost of a Caribbean wedding was less than $10,000. Listed below is a total cost in $000 for a sample of 8 Caribbean weddings. At the .05 significance level is it reasonable to conclude the mean wedding cost is less than $10,000 as advertised? 8.6 9.2 10.4 8.5 8.8 9.7 9.6 8.4

(a) State the null hypothesis and the alternate hypothesis. Use a .05 level of significance. (Enter your answers in thousands of dollars.) H0: ? ? H1: ? <

(b) State the decision rule for .05 significance level. (Round your answer to 3 decimal places.) Reject H0 if t <

(c) Compute the value of the test statistic. (Round your answer to 3 decimal places.) Value of the test statistic

(d) At the .05 significance level is it reasonable to conclude the mean wedding cost is less than $10,000 as advertised?

Reference no: EM13214116

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