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).
6.29 4.78 2.56 4.71 3.76 3.43 2.88
A button hyperlink to the SALT program that reads: Use SALT.
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
= 0.05.
(Hint: See Example 12.11.)
State the appropriate null and alternative hypotheses (in dollars). (Enter != for ≠ as needed.)
H0:
Ha:
Incorrect: Your answer is incorrect.
Find the test statistic. (Round your answer to two decimal places.)
Incorrect: Your answer is incorrect.
Use technology to find the P-value. (Round your answer to four decimal places.)
P-value =
Incorrect: Your answer is incorrect.