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Question - The purchase of a coin-operated laundry is being considered by a potential entrepreneur. The present owner claims that over the past year, the average daily revenue has been $675 with a standard deviation of $75. A sample of 30 randomly selected days from this time period reveals a daily average revenue of $635. Assume that the population standard deviation is $75.
(a) Is there evidence that the claim of the present owner is not valid? You should answer this question using a hypotheses test at the 5% level of significance. You should state the test statistic, the rejection region and the critical value for your test (b) Calculate the p-value for the hypothesis test in Part (a) and carry out the test using the p-value method at the 5% level of significance.
Financial Statement Analysis and Preparation
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