An Economist Conducted a Hypothesis Test to Test the Claim

question 11

Multiple Choice

An economist conducted a hypothesis test to test the claim that the average cost of eating a meal away from home decreased from 2012 to 2013. The average cost of eating a meal away from home in 2012 was $7.15 per person per meal. Assume that all conditions for testing have been met. He used technology to complete the hypothesis test. Following is his null and alternative hypothesis and the output from his graphing calculator.

Choose the statement that contains the correct conclusion regarding the hypothesis and the original claim.

• A) Reject the null hypothesis; there is sufficient evidence to support the claim that the average cost of eating away from home has decreased since 2012.
• B) Reject the null hypothesis; there is not sufficient evidence to support the claim that the average cost of eating away from home has decreased since 2012.
• C) Fail to reject the null hypothesis; there is sufficient evidence to support the claim that the average cost of eating away from home has decreased since 2012.
• D) Fail to reject the null hypothesis; there is not sufficient evidence to support the claim that the average cost of eating away from home has decreased since 2012

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Definitions:

Fastest-growing

Describes entities, sectors, or economies that are increasing in size, value, or importance at a more rapid pace than others within the same category.

Occupations

Refers to various jobs or professions that individuals engage in to earn income and contribute to the economy.

Elasticity Coefficient

A numerical measure of the responsiveness of the quantity demanded or supplied of a good or service to a change in one of its determinants, such as price.

Elastic

Describes a situation in economics where the demand for a product or service significantly changes in response to a price change.