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State appropriate null and alternative hypotheses for

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An insurance company stated that in 1987, the average yearly car insurance cost for a family in the U.S. was $1188.  In the same year, a random sample of 37 families in California resulted in a mean cost of  x¯ = $1228 with a standard deviation of s = $21.00. 

a. Does this suggest that the average insurance cost for a family in California in 1987 exceeded the national average? 

b. State the appropriate null and alternative hypotheses for this question.

c. Perform the statistical test of the null hypothesis at a significance level of 5%.

Reference no: EM13471943

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