Question
Customers of a large grocery chain who are members of the chain's incentives program spend an average of $45 per visit to the grocery. In
Customers of a large grocery chain who are members of the chain's incentives program spend an average of $45 per visit to the grocery. In an attempt to try and increase the amount spent by these regular customers at their stores, the chain institutes a new feature of the incentives program where customers receive an extra 5% discount on groceries when they spend $50 or more. A sample of 64 customers in the program is randomly selected and it is discovered that the next time they go to the store they spend an average of $52. The population standard deviation is $24. Does this provide sufficient evidence that the true mean is now significantly more than $45? Conduct the appropriate hypothesis test. Be sure to specify your null and alternative hypothesis, test statistic, Pvalue, and conclusion.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started