SOLUTION: 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

Question 616601: 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?
9.7

9.4

11.7

9.0

9.1

10.5

9.1

9.8

(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
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
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?
--------------
Ho: u >= 10,000
Ha: u < 10,000 (claim)
----------------
9.7
9.4
11.7
9.0
9.1
10.5
9.1
9.8

(b) State the decision rule for .05 significance level. (Round your answer to 3 decimal places.)
Critical value = invT(0.05 when df = 7) = -1.8946
Reject H0 if t < -1.943
=========================================
(c) Compute the value of the test statistic. (Round your answer to 3 decimal places.)
Value of the test statistic
t(9.7875) = (9.7875-10)/[0.9172/sqrt(8)] = -0.6553
-------------------
Cheers,
Stan H.
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