A restaurant chain has two locations in a medium-sized town and, believing that it has oversaturated the market for its
Posted: Fri Dec 24, 2021 10:08 am
A restaurant chain has two locations in a medium-sized town and,
believing that it has oversaturated the market for its food, is
considering closing one of the restaurants. The manager of the
restaurant with a downtown location claims that his restaurant
generates more revenue than the sister restaurant by the freeway.
The CEO of this company, wishing to test this claim, randomly
selects 36 monthly revenue totals for each restaurant. The revenue
data from the downtown restaurant have a mean of $360,000 and a
standard deviation of $50,000, while the data from the restaurant
by the freeway have a mean of $340,000 and a standard deviation of
$40,000. Assume there is no reason to believe the population
standard deviations are equal, and let μ1 and μ2 denote the mean
monthly revenue of the downtown restaurant and the restaurant by
the freeway, respectively. At the 5% significance level, does the
evidence support the manager's claim?
believing that it has oversaturated the market for its food, is
considering closing one of the restaurants. The manager of the
restaurant with a downtown location claims that his restaurant
generates more revenue than the sister restaurant by the freeway.
The CEO of this company, wishing to test this claim, randomly
selects 36 monthly revenue totals for each restaurant. The revenue
data from the downtown restaurant have a mean of $360,000 and a
standard deviation of $50,000, while the data from the restaurant
by the freeway have a mean of $340,000 and a standard deviation of
$40,000. Assume there is no reason to believe the population
standard deviations are equal, and let μ1 and μ2 denote the mean
monthly revenue of the downtown restaurant and the restaurant by
the freeway, respectively. At the 5% significance level, does the
evidence support the manager's claim?