Question

Do sit down restaurant franchises and fast food franchises differ significantly in stock price? Specifically, is the average stock price for sit-down restaurants different from the average stock price for fast food restaurants? A hypothesis test for two independent samples is run on data recorded from the stock exchange and a p-value is calculated to be 0.0166. What is the appropriate conclusion?

Question 15 options:

1)	The average stock price of sit-down restaurants is significantly greater than the average stock price of fast food restaurants.

2)	The average stock price of sit-down restaurants is equal to the average stock price of fast food restaurants.

3)	The average stock price of sit-down restaurants is significantly different from the average stock price of fast food restaurants.

4)	The average stock price of sit-down restaurants is significantly less than the average stock price of fast food restaurants.

5)	We did not find enough evidence to say a significant difference exists between the average stock price of sit-down restaurants and the average stock price of fast food restaurants.

Answer 1

Answer :

given data :-

Do sit down restaurant franchises and fast food franchises differ significantly in stock price? Specifically, is the average stock price for sit-down restaurants different from the average stock price for fast food restaurants? A hypothesis test for two independent samples is run on data recorded from the stock exchange and a p-value is calculated to be 0.0166.

p-value is = 0.0166

we will take significance level = 0.05

p-value 0.0166 less than 0.05

So, The appropriate conclusion is

(4). The average stock price of sit-down restaurants is significantly less than the average stock price of fast food restaurants.

option (4) is the correct answer