Answered: College Students' Expenditure on Coffee…

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

College Students' Expenditure on Coffee

A lounge-style cafe is planning to open a branch along Katipunan Avenue. Information gathered from all existing branches show that a new branch would be successful if each customer spends at least 350 pesos per visit with a standard deviation of 52 pesos. To discover if the prospective Katipunan branch would be successful, a survey of 300 students was conducted. The survey asked each respondent how much they would spend in a visit among other questions. The survey yielded an average spend per visit of 342 pesos.

Based on the preliminary research findings, management still finds promise in the prospective branch. Why do you think they have this opinion?

Group of answer choices:

There is no evidence that the sample mean is significantly less than 350 pesos.

The probability of observing a per visit spending of 342 pesos or more is very large.

I think that management is wrong in finding promise.

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