Answered: A marketing consultant is hired by a…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

A marketing consultant is hired by a major restaurant chain wishing to investigate the preferences and spending patterns of lunch customers. The CEO of the chain hypothesized that the average customer spends at least $13.50 on lunch. A survey of 25 customers sampled at one of the restaurants found the average lunch bill per customer to be ?¯=$14.50 . Based on previous surveys, the restaurant informs the marketing manager that the standard deviation is ?=$3.50 . To address the CEO’s conjecture, the marketing manager carried out a hypothesis test of ?0:?=13.50 vs. ??:?>13.50 and obtained a ?‑value = 0.77. The marketing chooses a significance level of ?=0.10.

If he uses this significance level throughout his work, how often will he reject a true null hypothesis?

Group of answer choices

a.He will reject 10% of all true null hypotheses.

b. He will reject 1% of all true null hypotheses.

c. He will reject 5% of all true null hypotheses.

d. He will not reject 10% of all true null hypotheses.

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