Consumer Expenditure Surveys

A researcher is interested in whether Virginians spend more dining out annually thanAmericans 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 nationallyAmericans 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 nationalaverage? Explain. Describe in detail the assumptions of statistical hypothesis testing?Does this data meet those conditions? If not, describe how you could collect data thatwould meet the required assumptions of statistical hypothesis testing. Also, formallyexpress the hypothesis and explain whether it is a one-tailed or two-tailed test. Lastly,what is the nullhypothesis? Explain in detail what would be required to reject the nullhypothesis. Be sure to include a discussion of test statistics, p values, alpha, and errors.

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