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Please solve the following using statistical software, R. Question: Jim and Joyc

ID: 3230928 • Letter: P

Question

Please solve the following using statistical software, R.

Question:

Jim and Joyce are opening a new restaurant, and they want to see if there average food item price of $8.19 is different from the rest of the town. They decided to look up a random sample of 37 menus (this town is big into restaurants) and looked at the cost. The data they found is provided below.

12.19

8.65

10.50

9.00

5.12

12.64

7.53

4.22

8.91

8.11

4.31

10.22

11.52

11.87

10.65

19.22

15.81

17.64

11.20

19.56

16.00

14.23

15.78

9.10

9.87

10.31

11.45

15.67

14.89

12.34

9.99

11.11

18.10

17.85

14.93

15.87

12.39

Test the normality of the population of food item cost for restaurants in this town. Use a significance level of 0.05. (10 points)

Hint: The name of the test you need to perform is called the Shapiro-Wilk’s Test

Are the assumptions for a one sample mean hypothesis test met? (5 points)

Test to see if the average food price of Jim and Joyce differs from rest of the town. Use a significance level of 0.05. (20 points)

Construct a 90% confidence interval for the mean menu price. Does this confidence interval match your conclusion in part c? Explain. (15 points)

******You must show all four steps of the hypothesis test.******

12.19

8.65

10.50

9.00

5.12

12.64

7.53

4.22

8.91

8.11

4.31

10.22

11.52

11.87

10.65

19.22

15.81

17.64

11.20

19.56

16.00

14.23

15.78

9.10

9.87

10.31

11.45

15.67

14.89

12.34

9.99

11.11

18.10

17.85

14.93

15.87

12.39

Explanation / Answer

Normality:

H0: The data is follows normal distribution

H1: The data is not follows normal distribution

Let the los be alpha = 0.05

> data=read.table("E:/data1.txt",header=F)
> price=data$V1
> shapiro.test(price)

   Shapiro-Wilk normality test

data: price
W = 0.97132, p-value = 0.4452

Here P-value 0.4452 > alpha 0.05, so we accept H0

Thus we conclude that  The data is follows normal distribution

Test for single mean

For this test, the assumption of t distribution is satiesfied since variable (price) is follows normal distribution

H0: the average food price of Jim and Joyce is not differs from rest of the town

H1: the average food price of Jim and Joyce differs from rest of the town

> t.test(price, mu=8.19, conf.level = 0.95)

   One Sample t-test

data: price
t = 6.0272, df = 36, p-value = 6.392e-07
alternative hypothesis: true mean is not equal to 8.19
95 percent confidence interval:
10.80315 13.45361
sample estimates:
mean of x
12.12838

The p-value is  6.392e-07 < alpha 0.05, So we reject H0

thus we conclude that  the average food price of Jim and Joyce differs from rest of the town

90% Confdiece interval:

> t.test(price, mu=8.19, conf.level = 0.90)

   One Sample t-test

data: price
t = 6.0272, df = 36, p-value = 6.392e-07
alternative hypothesis: true mean is not equal to 8.19
90 percent confidence interval:
11.02518 13.23157
sample estimates:
mean of x
12.12838

90 percent confidence interval of populatio mean : ( 11.02518, 13.23157)

> data=read.table("E:/data1.txt",header=F)
> price=data$V1
> shapiro.test(price)

   Shapiro-Wilk normality test

data: price
W = 0.97132, p-value = 0.4452