1. (15 pts) Victor owns a theater. He wishes to increase attendances and so considers offering customers unlimited amoun

[answerhappygod]

1 15 Pts Victor Owns A Theater He Wishes To Increase Attendances And So Considers Offering Customers Unlimited Amoun 1 (82.92 KiB) Viewed 32 times

1. (15 pts) Victor owns a theater. He wishes to increase attendances and so considers offering customers unlimited amounts of free popcorn and soft drinks. He estimates that the likely increase in attendances would result in his business being more profitable, provided that the mean value of the free items consumed by each customer was less than £1.50. Before deciding whether to proceed, Victor offers 60 customers entering the cinema free popcorn and soft drinks. The value of the items consumed by each of these customers has a mean of £1.33 and a standard deviation of £0.45. These customers may be regarded as a random sample of all his current customers. Conduct an hypothesis test to examine whether the mean value of free popcorn and soft drinks that would be consumed by his current customers is less than £1.50. (a) Write down the null and alternative hypothesis. (b) Calculate the p-value. (c) Using the 5% significance level, what is the result of the hypothesis test?