Question

After test-marketing a new product, a restaurant chain concluded that introduction of the product nationwide would...

After test-marketing a new product, a restaurant chain concluded that introduction of the product nationwide would increase its sales by more than 22%. This conclusion was based on recording sales information for a random sample of its restaurants selected for the marketing trial. With μ denoting the mean percentage increase in sales for all its restaurants, consider using the sample data to decide between H0 : μ = 22 and Ha : μ > 22.

(a) Is the restaurant chain's conclusion consistent with a decision to reject H0 or to fail to reject H0?

Reject H0   

or

Fail to reject H0    

(b) If the restaurant is incorrect in its conclusion, is the company making a Type I or a Type II error?

Type I error

or

Type II error

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A "sleep habits" survey answered by 46 randomly selected New Yorkers contained the question "How much...
A "sleep habits" survey answered by 46 randomly selected New Yorkers contained the question "How much sleep do you get per night?" The sample average was 7.8 hours, with a corresponding sample standard deviation of 0.82 hours. We want to test against the null hypothesis that New Yorkers get, on average, 8 hours of sleep per night. α=0.05. a. This null hypothesis should be formally written as: (You have two attempts at this question.) H0: μdifference = 8 H0: μ...
A restaurant wants to test a new in-store marketing scheme in a small number of stores...
A restaurant wants to test a new in-store marketing scheme in a small number of stores before rolling it out nationwide. The new ad promotes a premium drink that they want to increase the sales of. 18 locations are chosen at random and the number of drinks sold are recorded for 2 months before the new ad campaign and 2 months after. The 90% confidence interval to estimate the true average difference in nationwide sales quantity before the ad campaign...
##1). An agriculture company is testing a new product that is designed to make plants grow...
##1). An agriculture company is testing a new product that is designed to make plants grow taller. This can be thought of as a hypothesis test with the following hypotheses. H0: The product does not change the height of the plant. Ha: The product makes the plant grow taller. Is the following an example of a type I or type II error? The sample suggests that the product does not change the height of the plant, but it actually does...
B.    Suppose a recent random sample of employees nationwide who have a 401(k)-retirement plan found that 18%...
B.    Suppose a recent random sample of employees nationwide who have a 401(k)-retirement plan found that 18% of them had borrowed against it in the last year. A random sample of 100 employees from a local company who have a 401(k)-retirement plan found that 14 had borrowed from their plan. Based on the sample results, is it possible to conclude, at the α = 0.025 level of significance, that the local company had a lower proportion of borrowers from its 401(k)-retirement...
The marketing manager of a firm that produces laundry products decides to test market a new...
The marketing manager of a firm that produces laundry products decides to test market a new laundry product in each of the firm's two sales regions. He wants to determine whether there will be a difference in mean sales per market per month between the two regions. A random sample of 12 supermarkets from Region 1 had mean sales of 72.4 with a standard deviation of 6.2. A random sample of 16 supermarkets from Region 2 had a mean sales...
2. Sales at a fast-food restaurant average $6,000 per day. The restaurant decided to introduce an...
2. Sales at a fast-food restaurant average $6,000 per day. The restaurant decided to introduce an advertising campaign to increase daily sales. To determine the effectiveness of the advertising campaign, a sample of 49 days of sales were taken. They found that the average daily sales were $6,300 per day. From past history, the restaurant knew that its population standard deviation is about $1,000. If the level of significance is 0.05, have sales increased as a result of the advertising...
1. In the past, the average guest check at a local restaurant was $19.35 After the...
1. In the past, the average guest check at a local restaurant was $19.35 After the menu has been redesigned, a random sample of 20 guest checks was taken, the sample mean was $17.85 with the sample standard deviation of $3.88. Assume that the guest check amounts are approximately normally distributed. Is this enough evidence to believe that the average guest check has decreased? Use A. )A=0.10 Hypotheses: B.)Test Statistic: C.)Analyze data (assuming H0 is true): D.)State a Conclusion: 2....
The marketing manager of a firm that produces laundry products decides to test market a new...
The marketing manager of a firm that produces laundry products decides to test market a new laundry product in each of the firm's two sales regions. He wants to determine whether there will be a difference in mean sales per market per month between the two regions. A random sample of 12 supermarkets from Region 1 had mean sales of 79.2 with a standard deviation of 7.2. A random sample of 17 supermarkets from Region 2 had a mean sales...
You want to see if a redesign of the cover of a mail-order catalog will increase...
You want to see if a redesign of the cover of a mail-order catalog will increase sales. A very large number of customers will receive the original catalog, and a random sample of customers will receive the one with the new cover. For planning purposes, you are willing to assume that the mean sales for the new catalog will be approximately Normal with σ = 50 dollars and that the mean sales for the original catalog will be μ =...
Suppose a video teaching method will be adopted if a hypothesis test supports the conclusion that...
Suppose a video teaching method will be adopted if a hypothesis test supports the conclusion that the video teaching method increases the mean grade point average (GPA) of students. Now, the mean GPA of students for the current face-to face teaching method is 3.04. Which of the following is FALSE? Select one: A. Type II error may be made when the hypothesis test concludes that the video teaching method will not be adopted but actually the mean GPA of students...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT