Question

Hypothesis Testing – Indicate five steps in your answers (Null/alternate hypotheses, test-statistic, rejection area, decision for rejection, conclusion)

There are many grocery stores in New Jersey. The average number of customers checking out in each cashier register per ten minutes in all the grocery stores in New Jersey was 3.14 a year ago. Now, a marketer wishes to see if this number of customer is different now at the 5% of significance level. He visited 75 grocery stores and found that the average number of customers checking out in each cashier register of these stores was 2.98 with population standard deviation level of 0.82 customer. Are these data suggesting an evidence to support the marketer’s belief?

Answer 1

The test hypothesis is

This is a two-sided test because the alternative hypothesis is formulated to detect differences from the hypothesized mean value of 30 on either side.

Now, the value of test static can be found out by following formula:

we fail to reject the null hypothesis

We have insufficient evidence to support the marketer’s belief