Answered: A restaurant franchise has a policy of…

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 restaurant franchise has a policy of opening new restaurants only in those towns that have a mean household income of at least £20,000 per year. The research department of the franchise is currently considering a town to open a new restaurant, and so it took a sample of 143143 households. The mean income of this sample was £19365 with a sample standard deviation of £3660.

Calculate the test statistic for the hypothesis that the mean income in the town is equal to or greater than the company's threshold. Round to 3 decimal places.

At the 10% level of significance the franchise should not open a restaurant in this town? True or false?

The decision is the same if a 1% level of significance is used. True or false?

Definition Definition Measure of central tendency that is the average of a given data set. The mean value is evaluated as the quotient of the sum of all observations by the sample size. The mean, in contrast to a median, is affected by extreme values. Very large or very small values can distract the mean from the center of the data. Arithmetic mean: The most common type of mean is the arithmetic mean. It is evaluated using the formula: μ = 1 N ∑ i = 1 N x i Other types of means are the geometric mean, logarithmic mean, and harmonic mean. Geometric mean: The nth root of the product of n observations from a data set is defined as the geometric mean of the set: G = x 1 x 2 ... x n n Logarithmic mean: The difference of the natural logarithms of the two numbers, divided by the difference between the numbers is the logarithmic mean of the two numbers. The logarithmic mean is used particularly in heat transfer and mass transfer. ln x 2 − ln x 1 x 2 − x 1 Harmonic mean: The inverse of the arithmetic mean of the inverses of all the numbers in a data set is the harmonic mean of the data. 1 1 x 1 + 1 x 2 + ...

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