Question
An entrepreneur is considering the purchase of a coin-operated laundry. The current owner claims that over the past five years, the average daily revenue was
An entrepreneur is considering the purchase of a coin-operated laundry. The current owner claims that over the past five years, the average daily revenue was $775 with a standard deviation of $75. A sample of 60 days reveals a daily average revenue of $795. Suppose you wanted to test the hypothesis that the daily average revenue was greater than $775, using a p-value approach. Which of the following probability statement for the p-value is correct?
P(Z < -2.07) + P(Z < 2.07)
P(Z > 2.07)
P(t < -2.07) + P(t > 2.07)
P(Z < 2.07)
P(t > 2.07)
P(Z > 2.07) + P(Z < -2.07)
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