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A local food delivery company aims to provide information to the customers on the quality of restaurants in its network via user ratings. The customers
A local food delivery company aims to provide information to the customers on the quality of restaurants in its network via user ratings. The customers can rate a restaurant with integer values from the range [1, 10]. Assume, for the sake of the question, that the customers that provide a rating are independent and identically distributed. a) ( 5 pts) Are the mean rating and sample size enough as statistics about a restaurant? Explain. b) (20 pts) You consider placing an order from a restaurant only if the rating of a restaurant is not significantly lower than 7.5 (you decide the significance at a 5% level of significance). Restaurant A has received a mean rating of 7.4 from 256 users with a sample standard deviation of 0.8. Would restaurant A be in your list of candidate restaurants to order food from? c) (10 pts) Let the sample standard deviation of user ratings for restaurant A in part b) be 1.0. Would you include the restaurant in your list of candidate restaurants now? d) ( 5 pts) Let the mean of user ratings for restaurant A in part b) be 7.6. Explain why you can include the restaurant in your list of candidate restaurant without resorting to a statistical test
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