At the time she was hired as a server at the Grumney Family Restaurant, Beth Brigden was told, “You can average $80 a day in tips.” Assume the population of daily tips is normally distributed with a standard deviation of $9.95. Over the first 35 days she was employed at the restaurant, the mean daily amount of her tips was $84.85. At the .01 significance level, can Ms. Brigden conclude that her daily tips average more than $80?
(a) State the null hypothesis and the alternate hypothesis.
(b) State the decision rule.
(c) Compute the value of the test statistic.
(d) What is your decision regarding H0?
(e) What is the pvalue? Interpret it.
Solution:
