A restaurant that bills its house account monthly is concerned that the average monthly bill exceeds $200 per account. A random sample of twelve accounts is selected, resulting in a sample mean of
$220 and a standard deviation of $12. The t-test is to be conducted at the 5% level of significance.
A) The null hypothesis is μ ≤ 200. The alternate hypothesis is μ ≤ 200.
B) The null hypothesis is μ ≤ 200. The alternate hypothesis is μ 200.
C) The null hypothesis is μ = 200. The alternate hypothesis is μ ≠ 200.
D) The null hypothesis is μ 200. The alternate hypothesis is μ ≤ 200
E) The null hypothesis is μ ≤ 220. The alternate hypothesis is μ 220.

Question

A restaurant that bills its house account monthly is concerned that the average monthly bill exceeds $200 per account. A random sample of twelve accounts is selected, resulting in a sample mean of
$220 and a standard deviation of $12. The t-test is to be conducted at the 5% level of significance.
A) The null hypothesis is μ ≤ 200. The alternate hypothesis is μ ≤ 200.
B) The null hypothesis is μ ≤ 200. The alternate hypothesis is μ > 200.
C) The null hypothesis is μ = 200. The alternate hypothesis is μ ≠ 200.
D) The null hypothesis is μ > 200. The alternate hypothesis is μ ≤ 200
E) The null hypothesis is μ ≤ 220. The alternate hypothesis is μ > 220.

Quizplus · Accepted Answer

The null hypothesis should state that the average monthly bill is $200 or less (μ ≤ 200), and the alternate hypothesis should state that the average monthly bill exceeds $200 (μ > 200), which aligns with the restaurant's concern.

A Restaurant That Bills Its House Account Monthly Is Concerned