Question

A lot of people enjoy adding mayonnaise to their food. A company that produces millions of gallons of mayonnaise, wants to know if potential clients are purchasing more than 450 gallons per week of mayonnaise. Based on a randomly selected sample of 71 potential clients (mostly supermarkets), they found purchases averaging 531 gallons per week with a standard error of 39 gallons per week. Using a significance level of 0.06; Is there enough evidence to say that, on average, potential clients are purchasing more than 450 gallons per week of mayonnaise?

Answer 1

Here we need to find if potential clients are purchasing more than 450 gallons per week of mayonnaise.

So the null and the alternate hypothesis will be:

As the n is suffiecient large we wll use z distribution.First we will find test statistic.

Now P-value for P(z>2.077)=0.0189

As P-value(0.0189) is less than alpha=0.06 we reject the null hypothesis

Yes,there enough evidence to support the claim and say that, on average, potential clients are purchasing more than 450 gallons per week of mayonnaise.