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?

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?

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Expert Answer

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:

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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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Hypothesis Testing

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