Franquicias Nororientales, S.A., has some clients that use its process to produce exotic Norwegian dining for clients from all over the world. The cost of operating the franchised process has a fixed cost of $1,000 per week plus $5 for each unit produced. Recently, some restaurant owners using the process have been complained that the cost model is no longer valid and that the weekly costs are, in actually higher. Your job is to find out if there is strong evidence to support the affirmation of the restaurant owners. Obtains a random sample of n = 25 restaurants and find out their costs. You also know that the number of units produced in each restaurant it follows a normal distribution with mean μ = 400 and variance σ2 = 625. The average of the weekly costs obtained with the random sample (n = 25) is $3,050. Develop and apply an analysis to find out if there is strong evidence that conclude that the costs are higher than what the cost model predicts.
Franquicias Nororientales, S.A., has some clients that use its process to produce
exotic Norwegian dining for clients from all over the world. The cost of operating the
franchised process has a fixed cost of $1,000 per week plus $5 for each unit
produced. Recently, some restaurant owners using the process have been
complained that the cost model is no longer valid and that the weekly costs are, in
actually higher. Your job is to find out if there is strong evidence to support
the affirmation of the restaurant owners. Obtains a random sample of n = 25
restaurants and find out their costs. You also know that the number of units produced
in each restaurant it follows a
The average of the weekly costs obtained with the random sample (n = 25) is $3,050.
Develop and apply an analysis to find out if there is strong evidence that
conclude that the costs are higher than what the cost model predicts. (Newbolt Exercise 10.58)
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