Posted: November 9th, 2016

If you were to test the null hypothesis that the daily mean revenue was $675, which test would you use? A.

A pizza chain is considering opening a new store in an area that currently does not have any such stores. The chain will open if there is evidence that more than 5,000 of the 20,000 households in the area have a favorable view of its chain. It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have a favorable view. The pizza chain’s conclusion from the hypothesis test using a 5% level of significance is: A.) to delay opening a new store until additional evidence is collected. B.) to open a new store. C.) We cannot tell what the decision should be from the information given. D.) not to open a new store. 4.) A pizza chain is considering opening a new store in an area that currently does not have any such stores. The chain will open if there is evidence that more than 5,000 of the 20,000 households in the area have a favorable view of its chain. It conducts a telephone poll of 300 randomly selected households in the area and finds that 96 have a favorable view. The decision on the hypothesis test using a 5% level of significance is: A.) to fail to reject H0in favor of H1. B.) We cannot tell what the decision should be from the information given. C.) to reject H0in favor of H1. D.) to accept H0in favor of H1. 5.) An entrepreneur is considering the purchase of a coin-operated laundry. The current owner claims that over the past 5 years, the mean daily revenue was $675 with a population standard deviation of $75. A sample of 30 days reveals a daily mean revenue of $625. If you were to test the null hypothesis that the daily mean revenue was $675, which test would you use? A.) t test of a population proportion B.) Z test of a population proportion C.) t test of population mean D.) Z test of a population mean