Statistics Homework Solutions
Problem
#8002

Word Problem

At the time she was hired as a server at a restaurant, Beth was told she could average more than $20.00 a day in tips. Over the first 35 days she was employed, the mean daily amount of her tips was $24.85, with a standard deviation of $3.24. At the .01 significance level, can Beth conclude that she is earning an average of more than $20.00 in tips?


Solution Summary

At the time she was hired as a server at a restaurant, Beth was told she could average more than $20.00 a day in tips. Over the first 35 days she was employed, the mean daily amount of her tips was $24.85, with a standard deviation of $3.24. At the .01 significance level, can Beth conclude that she is earning an average of more than $20.00 in tips?

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