Which is cheaper: eating out or dining in? The mean cost of a flank steak, broccoli, and rice bought at the grocery store is $13.04. A sample of 100 neighborhood restaurants showed a mean price of $12.65 and a standard deviation of $2 for a comparable restaurant meal. (a) Choose the appropriate hypotheses for a test to determine whether the sample data support the conclusion that the mean cost of a restaurant meal is less than fixing a comparable meal at home.

Null Hypothesis, : $13.04  

Alternate Hypothesis, : < $13.04

Step-by-step explanation:

We are given that the mean cost of a flank steak, broccoli, and rice bought at the grocery store is $13.04.

A sample of 100 neighborhood restaurants showed a mean price of $12.65 and a standard deviation of $2 for a comparable restaurant meal.

Let = mean cost of a restaurant meal

So, Null Hypothesis, : $13.04  

Alternate Hypothesis, : < $13.04

Here, null hypothesis states that the mean cost of a restaurant meal is more than or equal to fixing a comparable meal at home.

On the other hand, alternate hypothesis states that the mean cost of a restaurant meal is less than fixing a comparable meal at home.

The test statistics that we can use for conducting this hypothesis would be t test statistics as we don't know about population standard deviation;

                            T.S. =  ~

where, = sample mean price of a restaurant meal $12.65

             s = sample standard deviation = $2

             n = sample of neighborhood restaurants = 100

step-by-step explanation:

what was your answer?