A researcher is interested in whether Virginians spend more dining out annually than
Americans living in other states. She asks 30 of her friends and calculates a mean of
$4,500. Based on data from the Consumer Expenditure Surveys, we know that nationally
Americans spend on average $3,459 annually on food away from home.
Does this mean that the average Virginian does in fact spend more than the national
average? Explain. Describe in detail the assumptions of statistical hypothesis testing?
Does this data meet those conditions? If not, describe how you could collect data that
would meet the required assumptions of statistical hypothesis testing. Also, formally
express the hypothesis and explain whether it is a one-tailed or two-tailed test. Lastly,
what is the null hypothesis? Explain in detail what would be required to reject the null
hypothesis. Be sure to include a discussion of test statistics, p values, alpha, and errors.