1). Which is cheaper: eating in or dining out? The mean cost of a flank steak, broccoli, and rice bought at the grocery store is $13.04. A sample of 100 neighborhood restaurants showed an average price of $12.75 with a standard deviation of $2 for a comparable restaurant meal. At 95% confidence, is there evidence to show that the average cost of a restaurant meal is less than fixing a comparable meal at home? What is your conclusion? Explain your conclusions. 2). The Coca-Cola company reported that the mean per capita annual sales of its beverages in the United States was 423 eight-ounce servings with a standard deviation of 101.9 ounces. Suppose you are curious whether the consumption of Coca-Cola beverages is higher in Atlanta, GA, the location of Coca-Cola’s corporate headquarters. A sample of (36) individuals from the Atlanta area showed a sample mean annual consumption of 460.4 eight-ounce servings. Using a .01 level of significance, do the sample results support the conclusion that the mean annual consumption of Coca-Cola beverage products is higher in Atlanta? Compute the p-value and interpret its meaning. Explain your conclusions. 3). It is claimed that ten years ago 53% of American families owned stocks or stock funds. Sample data collected by the Investment Company Institute indicate that the percentage is now 46%. Using a 94% level of confidence, is there evidence to show the proportion of American families that currently own stock or stock funds is different from 53%? Compute the p-value and interpret its meaning. Explain your conclusions. 4). According to the University of Nevada Center for Logistics Management, 6% of all merchandise sold in the United States gets returned. A Houston department store sampled 80 items sold in January and found that 12 of the items returned. Is there evidence to show the proportion of returns at the Houston store was more than the national expectation at the .10 level of significance? Compute the p-value and interpret its meaning. Explain your conclusions.
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