Stone Solutions, a sales company, is looking to predict its average sales for next month of October. The company is claiming that their average sales for the upcoming month of October will be at least 82,750 dollars. A group of seven people suspect the claim may be incorrect and based on a random sample gathered from 8 currently used sales representatives and one category of sales made without representatives, the total number of sales from January to September was 713,888.93 dollars. Since this represents approximately nine months of sales, this number was divided by 9 to give average monthly sales. According to data, the average monthly sales in company are 79,320.99 dollars with the standard deviation of 47,953.34 dollars. Supposing the population is normally distributed they decide to perform the hypothesis test.
Statement of Hypotheses
The null hypothesis would be average sales for October is greater than or equal to 82,750 dollars or H? : µ ≥ 82,750.