The Economist collects data each year on the price of a Big

Last updated: 12/8/2023

The Economist collects data each year on the price of a Big Mac in various countries around the world A sample of McDonald s restaurants in Europe in July 2021 resulted in the following Big Mac prices after conversion to U S dollars 6 33 4 74 2 54 4 71 3 76 3 41 2 86 LUSE SALT H The mean price of a Big Mac in the United States in July 2021 was 5 81 For purposes of this exercise you can assume it is reasonable to regard the sample as representative of European McDonald s restaurants Does the sample provide convincing evidence that the mean July 2021 price of a Big Mac in Europe is less than the reported U S price Test the relevant hypotheses using a 0 05 Hint See Example 12 11 State the appropriate null and alternative hypotheses in dollars Enter for as needed Ho Find the test statistic Round your answer to two decimal places MY NOTES Use technology to find the P value Round your answer to four decimal places P value State the conclusion in the problem context We reject Ho We do not have convincing evidence that the mean July 2021 price of a Big Mac in Europe is less than the reported U S price We fail to reject Ho We have convincing evidence that the mean July 2021 price of a Big Mac in Europe is less than the reported U S price We fail to reject Ho We do not have convincing evidence that the mean July 2021 price of a Big Mac in Europe is less than the reported U S price We reject H We have convincing evidence that the mean July 2021 price of a Big Mac in Europe is less than the reported U S price