If we wanted to shorten the interval of the estimation of, Ask an Expert

Statistics

One sample t test and Confidence Interval for the population mean.

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.

a. Formulate an appropriate hypothesis test to examine at the 10 percent level of significance whether the manager's worries are justified.

b. What should the level of significance be to arrive at an end?

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

d. If we wanted to shorten the interval of the estimation of the true mean of Saturday sales to a width of $600 in total, what should the size of our sample be to achieve it?

e. If the true mean for Saturday sales is now $4500, what is the likelihood of accepting the (false) null hypothesis in (a) above (the probability of not sharing the manager's concern because of lack of evidence)?

View complete question

Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M921040

Have any Question?Write your Review or question?

Related Questions in Statistics and Probability

You have a bag containing poker chips there are 18 total

You have a bag containing poker chips. There are 18 total chips, consisting of 9 white chips, 6 blue chips, 2 red chips, and 1 green chip. a. You remove one chip from the bag. What is the probability that the chip is blu ...

In a study of helicopter usage and patient survival among

In a study of helicopter usage and patient? survival, among the 55,032 patients transported by? helicopter, 227 of them left the treatment center against medical? advice, and the other 54,805 did not leave against medica ...

The board of a major credit card company requires that the

The board of a major credit card company requires that the mean wait time for customers when they call customer service is at most 3.00 minutes. To make sure that the mean wait is not exceeding the requirement, an assist ...

The acme insurance company has two types of customers

The ACME Insurance Company has two types of customers, careful and reckless. A careful customer has an accident during the year with probability 0.01. A reckless customer has an accident during the year with probability ...

Zero-coupon bonds with a par value of 1000000 have a

Zero-coupon bonds with a par value of $1,000,000 have a maturity of 10 years and a required rate of return of 9 percent. What is the current price?

Amy wants to deposit money each year for the next five

Amy wants to deposit money each year for the next five years and each deposit to have $30,000 in real dollars currently and the inflation rate is 3% per year and the nominal interest rate is 9.18%. (Round off all answers ...

Answer as thourough as possibleconsider an airline whose

Answer as thourough as possible. Consider an airline whose bottom line is sensitive to volatile jet fuel prices. To reduce the volatility, management decides to use derivatives to hedge the cost of jet fuel. The risk man ...

In a certain state pickup trucks account for 21 of the

In a certain? state, pickup trucks account for 21?% of the? state's registered vehicles. If 100 registered vehicles are selected at? random, what is the expected number of pickup? trucks?

Net present valuenbspriggs corp management is planning to

Net present value: Riggs Corp. management is planning to spend $650,000 on a new- marketing campaign. They believe that this action will result in additional cash flows of $325,000 over the next three years. If the disc ...

You can invest money each month at 6 percent interest

You can invest money each month at 6 percent interest compounded monthly over the next 30 years. In 30 years, you will take all the money you invested and put it into an account earning 8 percent compounded monthly. Then ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Statistics and Probability Expert