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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

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