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Formulating null and alternative hypothesis to test the claim that the Wendy's franchise has been averaging about $5000.

A Wendy's franchise has been averaging about $5000 worth of business on a typical Saturday with a standard deviation of σ = $500. The manager is concerned that sales are slipping, after taking into account the average value of sales for four consecutive Saturdays being $4800.

What should the level of significance be to arrive at a conclusion that would be the opposite of the one you have arrived?

Based on the sample findings, estimate the true mean of Saturday sales with 90 percent probability.

If the true mean for Saturday sales is now $4500, what is the possibility of accepting the (false) null hypothesis?

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Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M921041

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