Question 13 • Advanced Algebra: Concepts and Connections
Kavita has been assigned the task of studying the average customer receipt for a branch of a major restaurant chain. The average receipt for the chain is $72.00 with a standard deviation of $11.00. The branch she is studying has an average bill of $67.00 for the last 40 receipts. She needs to know if this falls below the chain’s average. She will use a 1% level for significance because she does not want to inadvertently report the restaurants income as below average. Upper-Tail Values A 5 percent 2 point 5 percent 1% Critical z -v alues 1 point 6 5 1 point 9 6 2 point 5 8 Which choice depicts the result for Kavita’s hypothesis test?
Answer
A
She should reject ratio of cap h sub 0 to mu is equal to 72 and accept ratio of cap h sub A to mu is less than 72 .
B
She should reject ratio of cap h sub A to mu is less than 72 but cannot accept ratio of cap h sub 0 to mu is equal to 72 .
C
She should reject ratio of cap h sub 0 to mu is equal to 72 and accept ratio of cap h sub A to mu is not equal to 72 .