Interval of the estimation of true mean

Assignment Help Basic Statistics

Reference no: EM1320782

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% level of significance whether the manager's worries are justified.

b. What should the level of significance be to arrive at a conclusion ?

c. Based on the sample findings, estimate the true mean of Saturday sales with 90% 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 probability of accepting the (false) null hypothesis in (a) above (the probability of not sharing the manager's concern because of lack of evidence)?

Reference no: EM1320782

Questions Cloud

Identifying the information security problem : In relation to the project management tools, discuss and give two examples or scenarios in order to demonstrate how the work breakdown structure could recognize and plan an information security problem or issue in the organisation.

Lump sum tax cause the after tax consumption schedule : Does a lump sum tax cause the after tax consumption schedule to be flatter than the before tax consumption schedule.

Increases expected number of credits by regression equation : Regression equation Credits=15.4-.07. Select the correct statement. Increase in number of hours worked per week increases the expected number of credits.

Find the probability for the ride who will get a seat : Find the probability that everyone who appears for the ride will get a seat.

Interval of the estimation of true mean : 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?

Assume the manager asks for volunteers postpone their tour : Assume the manager asks for volunteers to postpone their tour by offering increasing amounts of cash compensation until only four people want to see the caves that day.

Determining the asymptotic formula : Provide an asymptotic formula for each of the following recurrence equations, utilizing big “Θ” rather than just big “O” for better results whenever possible.

Protection to intellectual property : Compare and contrast the protection to intellectual property provided by trade secrets relative to that provided by patents.

Minimum price necessary for the company to supply : Illustrate what is the minimum price necessary for the company to supply one thousand cups.

User Account

All Pages