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Q1) Stone Solutions, a sales company, is looking to forecast its average sales for upcoming month of October. Company is claiming that their average sales for upcoming month of October will be at least 82,750 dollars. Group of 7 people suspect claim may be wrong and based on random sample collected from eight currently employed sales representatives and 1 category of sales made with no representatives, total number of sales from January to September was 713,888.93 dollars. As this represents approximately 9 months of sales, this number was divided by nine to provide average monthly sales. According to data, average monthly sales in company are 79,320.99 dollars with standard deviation of 47,953.34 dollars. Suppose the population is normally distributed they make a decision to do a hypothesis test.
Statement of Hypotheses
Null hypothesis would be average sales for October is greater than or equal to 82,750 dollars or H? : µ ≥ 82,750.
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