Question

A grocery store analyst is studying daily sales for establishments located along the Gulf coast. The daily sales are known to follow a normal distribution. A random sample of 16 stores exhibited a sample mean (in thousands of dollars) of 9.43. The population standard deviation (in thousands of dollars) is known to be 2.85. Suppose the analyst's status quo understanding is that daily sales for this class of establishment averages (in thousands of dollars) no more than 8.00

1. What would the null hypothesis and alternate hypothesis be in this situation?

2. What is the critical value for the test statistic (assume α = 0.05)? Using R Studio and provide the codes

3. Given your answers to A and B, what do the results of this analysis suggest about the analyst's status quo understanding?

Answer 1

R Codes

z=sqrt(16)*(9.43-8)/2.85

> z

[1] 2.007018

> cut.off=qnorm(.05)

> cut.off

[1] -1.644854

For query in above, comment.