Moir recently launched a new-flavoured pudding. The marketing manager now wants to assess the product’s success in the marketplace. If average sales per week are less than R5 500 per outlet, the product will be withdrawn. The results from a sample of 18 supermarket outlets countrywide showed that average sales per week were R5 275, with a sample standard deviation of R788. Assume weekly sales are normally distributed.

Advise the new marketing manager if the new pudding flavour should be withdrawn or not?

(a) Formulate the null and alternative hypothesis.

(b) Perform a hypothesis test for a single mean at the 10% level of significance.

(c) What statistical and management conclusions can be drawn?