A bar owner was observing how many drinks his clients had on a Saturday night. A sample of 24 customers, randomly selected from the bar, resulted in a sample mean of 6.2 drinks. The owner knows that the number of drinks consumed at the bar follows a normal distribution with a standard deviation of 1.5 drinks. The owner wishes to test whether the mean number of drinks consumed over all Saturday nights is less than 7, with a 5% level of significance.
Q. What are the null and alternative hypotheses?
Q. What is the p-value?
Q. What is the appropriate conclusion?
a) Reject Ho. There is sufficient evidence to conclude that the mean number of drinks consumed on a Saturday night is less than
7.
b) Reject H0. There is insufficient evidence to conclude that the mean number of drinks consumed on a Saturday night is less than 7.
c) Do not reject H0. There is sufficient evidence to conclude that the mean number of drinks consumed on a Saturday night is less than 7.
d) Do not reject H0. There is insufficient evidence to conclude that the mean number of drinks consumed on a Saturday night is less than 7.