Question

Asked Nov 24, 2019

Sales at a fast-food restaurant average $6,000 per day. The restaurant decided to introduce an advertising campaign to increase daily sales. To determine the effectiveness of the advertising campaign, a sample of 49 days of sales were taken. They found that the average daily sales were $6,300 per day. From past history, the restaurant knew that its population standard deviation is about $1,000. If the level of significance is 0.05, have sales increased as a result of the advertising campaign?

Step 1

Null hypothesis:

*µ=6,000.*

Alternative hypothesis:

*µ>6,000.*

Here, the sample mean, *x*-bar is 6,300.

Population mean, *µ* is 6,000.

Population standard deviation, *σ *= 1,000.

Sample size, *n* is 49.

The test statistic value can be obtained as follows:

Step 2

*Computation of P-value:*

The *P*-value for the z-test for the critical value 2.1 is **0.00383** which can be can be obtained using ...

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