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 critical value of t is +1.796. The calculated value of t is +5.77.
B) The critical value of t is -1.796. The calculated value of t is -5.77.
C) The critical value of t is +2.201. The calculated value of t is +5.77.
D) The critical value of t is +2.201. The calculated value of t is +1.40.
E) The critical value of t is +2.201. The calculated value of t is -5.77.

Question

Quizplus · Accepted Answer

The critical value of t is +1.796. The calculated value of t is +5.77. This means that the sample mean is significantly greater than the hypothesized mean of $200.

A Restaurant That Bills Its House Account Monthly Is Concerned