Question 9 • Concepts in Probability and Statistics - MA3120 B-CR
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 Valuesa5%2.5%1%Critical z-values1.651.962.58Which choice depicts the result for Kavita’s hypothesis test?
Answer
A
She should reject H0: µ = 72 and accept Ha: µ < 72.
B
She should reject H0: µ = 72 and accept Ha: µ 72.
C
She should accept H0: µ = 72 and reject Ha: µ 72.
D
She should reject Ha: µ < 72 but cannot accept H0: µ = 72.