In an article in Business Week (Living on the Edge at American Apparel), Dov Chaney, the CEO
Question:
In an article in Business Week (“Living on the Edge at American Apparel”), Dov Chaney, the CEO of American Apparel, indicated that the apparel store industry’s average sales were $1,800/7 1 = + 257.14 2 a square foot. A hypothesis test was requested to determine if the data supported the statement made by the American Apparel CEO using an a = 0.05 and a sample size of 41. Produce the probability that the data will indicate that American Apparel stores produce an average of seven times the apparel industry average when in fact they only produce an average six times the apparel industry average with a standard deviation of 100. The file called Apparel contains data for a random sample of several competitors’ sales per square foot. Use α = 0.05.
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Step 1 Specify the population parameter of interest The parameter of interest is ...View the full answer
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