Question: The average retail price for bananas in 1994 was 46.0 cents per pound, as reported by the U.S. Department of Agriculture in Food Cost Review. A random sample of 15 markets gave the following prices for bananas in cents per pound (in 1994).

We want to test the USDA’s reported price using the given data with 5% significance level:

a) Set up the hypotheses. You may choose either one tailed-test or a two-tailed test.

b) Calculate the value of the test statistic.

c) Draw a graph indicating the critical (rejection) region.

d) Perform the hypothesis test using the p-value method.

e) From d), can we conclude that the true mean retail price for bananas in 1994 is different from the 1994 USDA’s mean of 46.0 cents per pound?