Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Ron is considering the purchase of a donut shop. He has 2 donut shops under consideration. He has decided to purchase the shop with the

  1. Ron is considering the purchase of a donut shop. He has 2 donut shops under consideration. He has decided to purchase the shop with the highest average daily sales. He has been told that Donut Shop #1 has the higher average daily sales. However, he only has daily sales information for the last 12 days for each shop. The daily sales for each donut shop are presented below. Using a matched paired design and a 5% level of significance, test the claim that Donut Shop #1 has higher average daily sales than Donut Shop #2.

    Daily Sales ($000)

    Day

    Shop#1

    Shop#2

    D

    D2

    1

    10.2

    9.8

    0.40

    0.16

    2

    11.0

    10.9

    0.10

    0.01

    3

    10.8

    11.0

    -0.20

    0.04

    4

    9.9

    8.8

    1.10

    1.21

    5

    10.5

    12.0

    -1.50

    2.25

    6

    11.6

    10.2

    1.40

    1.96

    7

    11.9

    10.0

    1.90

    3.61

    8

    12.2

    11.6

    0.60

    0.36

    9

    13.8

    13.0

    0.80

    0.64

    10

    9.0

    8.0

    1.00

    1.00

    11

    10.6

    10.8

    -0.20

    0.04

    12

    12.4

    11.1

    1.30

    1.69

    Total

    6.70

    12.97

    At 5% level of significance, what is your conclusion?

    The null hypothesis is rejected.

    The null hypothesis is not rejected.

    The alternative hypothesis is rejected.

    The alternative hypothesis is not rejected

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions