In an effort to better manage his inventory levels, the owner of a restaurant chain, wants to know which one of his locations sells more halibut fillets on average. In order to find out, he takes a random sample of seven days worth of sales from each location. The data is shown below:
Observation # | North side # Fillets sold | South side # Fillets sold |
1 | 1 | 10 |
2 | 5 | 5 |
3 | 8 | 4 |
4 | 4 | 7 |
5 | 2 | 9 |
6 | 4 | 4 |
7 | 10 | 10 |
Average | 4.86 | 7 |
Standard dev (s) | 3.18 |
2.71 |
Test to see if the south side location sells more halibut fillets on average than the north side location. Use alpha=0.05.
H0: Null Hypothesis:
HA:Alternative Hypothesis:
Test statistic is:
t = (4.86 - 7.00)/1.5792 = - 1.36
= 0.05
ndf = n1+n2 - 2 = 7 + 7 - 2 = 12
One Tail Test - Let Side
From Table, critical value of t = - 1.7823
Since the calculated value of t = - 1.36 is greater than critical value of t = - 1.7823, the difference is not significant. Fail to reject null hypothesis.
Conclusion:
The data do not support the claim that the south side location sells more halibut fillets on average than the north side location.
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