According to the Vivino website, the mean price for a bottle of red wine that scores 4.0 or higher on the Vivino Rating System is $32.48. A New England–based lifestyle magazine wants to determine if...

According to the Vivino website, the mean price for a bottle of red wine that scores 4.0 or higher on the Vivino Rating System is $32.48. A New England–based lifestyle magazine wants to determine if red wines of the same quality are less expensive in Providence, and it has collected prices for 56 randomly selected red wines of similar quality from wine stores throughout Providence. The mean and standard deviation for this sample are $30.15 and $12, respectively.

Using the
p-value approach
, develop appropriate hypotheses for a test to determine whether the sample data support the conclusion that the mean price in Providence for a bottle of red wine that scores 4.0 or higher on the Vivino Rating System is less than the population mean of $32.48. Useα = 0.05.

p

-value Approach

Develop the null and alternative hypothesis

Specify the level of significance, α

Choose the test statistic (z
or
t)

Calculate the test statistic

Use the value of the test statistic to compute the
p-value.

Reject
H0 if
p-value ≤
α

Interpret the statistical conclusion in the context of the problem.