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Beer Drinking. According to the Beer Institute Annual Report the mean annual consumption of beer per person in the United State is \(28.2\) gallons (roughly \(300\) twelve-ounce bottles). A random sample of \(300\) Missouri residents yielded the annual beer consumptions provided on the Weiss Stats site. Use the technology of your choice to do the following.

a. Obtain a histogram of the data.

b. Does your histogram in part (a) indicate any outliers?

c. At the \(1\%\) significance level, do the data provide sufficient evidence to conclude that the mean annual consumption of beer per person in Missouri differs from the national mean? (Note: See the third bulleted item in Key Fact \(9.7\) on page \(372.\))

Short Answer

Expert verified

Therefore, the data provide sufficient evidence to conclude that the average annual consumption of beer in Missouri differs from the national average at \(1\%\).

Step by step solution

01

Step 1. Given information

The annual beer consumptions reported on the Weiss Stats site were based on a random sampling of \(300\) Missouri residents.

02

Step 2. Construct a histogram using MINITAB

MINITAB process:

Step 1: Select Graph> Histogram.

Step 2: Select Easy, then click Beer

Step 3: In the dynamic graphs, enter the corresponding SALARY column.

Step 4: Click OK.

03

Step 3. MINITAB OUTPUT

The histogram plainly demonstrates that the distribution isn't bell-shaped. That is, the data distribution is biassed to the right, with an outlier at the extreme.

Furthermore, neither test should be employed because the sample is large and the data distribution is not normally distributed. Some statisticians, however, will utilise the t-test because the population standard deviation is unknown.

04

Part(b) Check whether the histogram in part (a) indicate any outliers.

Yes, the histogram in section (a) shows the exception. That is, Observation \(110\) is considered an external entity.

05

Step 5. Null and alternative hypothesis 

The null hypothesis is that each person in the United States consumes \(28.2\) gallons of beer per year on average.

The second hypothesis is:

H.:#28.2

That is, in the United States, the average annual beer consumption is not \(28.2\) gallons.

06

Step 6. Compute the value of statistic 

MINITAB procedure:

First, go to Stat > Basic Statistics > \(1\)-From the drop-down menu, select \(t\).

Step 2: From the Samples in Column menu, choose Beer.

Step 3: Type \(28.2\) as the test mean in the Perform hypothesis test box.

Step 4: Change the Confidence Level to \(99\) in Options.

Step 5: Choose not equal instead of equal.

Step 6: Click OK in all dialogue boxes.

07

Step 7. MINITAB output

08

Step 8. Rejection rule 

The null hypothesis must be rejected if \(Pa\) is true.

Conclusion

The significance level is \(0.003\), thus the \(P\)-value is smaller than that. To put it another way, \(P(=0.003)a (=0.01)\)

As a result, the null hypothesis is rejected at a \(1\%\) level.

As a result, at the \(1\%\) level of significance, the test results might be declared statistically significant.

09

Step 9. Interpretation

The data give adequate information to determine that Missouri's mean annual beer consumption per person differs by \(1\%\) from the national average..

10

Step 10. Compute the value of statistic again

MINITAB procedure:

Step 1: Select Stat > Basic Statistics > \(1-\)Sample t from the drop-down menu.

Step 2: Select Beer from the Samples in Column menu.

Step 3: In the Perform hypothesis test box, enter \(28.2\) as the test mean.

Step 4: Go to Options and change the Confidence Level to \(99\).

Step 5: Instead of equal, choose not equal.

Step 6: In all dialogue boxes, click OK.

11

Step 11. MINITAB output

12

Step 12. P-value approach 

The significance level is \(0.006\), thus the \(P-\)value is smaller than that. To put it another way, \(P(-0.006)a (=0.01)\)

As a result, the null hypothesis is rejected at a \(1\%\) level.

As a result, at the \(1\%\) level of significance, the test results might be declared statistically significant.

As a result, the data are adequate to establish that Missouri's average yearly beer consumption differs by \(1\%\) from the national average.

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