**An article in the local paper claims that the average amount spent in a visit to a fast food restaurant is $20. Is the fast food restaurant in problem # 1 unusually cheap? (Conduct a hypothesis test to answer this question. Use a 5% level of significance.) Assume that the amount people spend is approximately normally distributed.**

**a**) Ho:

H1:

**b**) Is this a right-tailed, two-tailed or left-tailed test?

**c**) Compute the z or t value of the sample test statistic. Show the appropriate computation.

**d**) Find the p-value for the sample test statistic. Sketch of the appropriate curve and label the test statistic and p-value on the sketch.

**e**) Based on your answers above, do you reject or fail to reject the null hypothesis? What do you conclude about the average cost at this restaurant? State your conclusion in nontechnical terms.

**Final**

**Answers:**

a) Ho: μ = 20

H1: μ < 20

b) This is a left tailed test

c) t = -2.965

d) P-value = 0.0024

e) Here we Reject Null Hypothesis. We can conclude that the fast food restaurant in problem # 1 unusually cheap.