The manager of a restaurant in a large city claims that waiters working in all restaurants in his city earn an average of $153 or more in tips per week. A random sample of 26 waiters selected from restaurants of this city yielded a mean of $140 in tips per week with a standard deviation of $28. Assume that the weekly tips for all waiters in this city have a normal distribution. a. Using a 5% significance level, can you conclude that the manager's claim is false? Use both approaches. Use the p-value approach. Use the t distribution table to find a range for the p-value. Enter the exact values for the range. i

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Author:Amos Gilat
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Chapter1: Starting With Matlab
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The manager of a restaurant in a large city claims that waiters working in all restaurants in his city earn an average of $153 or more in
tips per week. A random sample of 26 waiters selected from restaurants of this city yielded a mean of $140 in tips per week with a
standard deviation of $28. Assume that the weekly tips for all waiters in this city have a normal distribution.
a. Using a 5% significance level, can you conclude that the manager's claim is false? Use both approaches.
Use the p-value approach. Use the t distribution table to find a range for the p-value. Enter the exact values for the range.
< p-value <
i
Use the critical-value approach.
Round your observed value to four decimal places.
Observed value =
i
Critical value =
i
Conclusion: The manager' s claim is
b. What is the Type I error in this exercise? Explain. What is the probability of making such an error?
The Type l error would occur if the mean waiter's earnings from tips was
* $153 but we concluded that it was
* $153,
The probability of making such an error is
i
Transcribed Image Text:The manager of a restaurant in a large city claims that waiters working in all restaurants in his city earn an average of $153 or more in tips per week. A random sample of 26 waiters selected from restaurants of this city yielded a mean of $140 in tips per week with a standard deviation of $28. Assume that the weekly tips for all waiters in this city have a normal distribution. a. Using a 5% significance level, can you conclude that the manager's claim is false? Use both approaches. Use the p-value approach. Use the t distribution table to find a range for the p-value. Enter the exact values for the range. < p-value < i Use the critical-value approach. Round your observed value to four decimal places. Observed value = i Critical value = i Conclusion: The manager' s claim is b. What is the Type I error in this exercise? Explain. What is the probability of making such an error? The Type l error would occur if the mean waiter's earnings from tips was * $153 but we concluded that it was * $153, The probability of making such an error is i
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