The average McDonald's restaurant generates $2 million in sales each year with a standard deviation of 0.6. Courtney wants to know if the average sales generated by McDonald's restaurants in Tennessee is different than the worldwide average. She surveys 31 restaurants in Tennessee and finds the following data (in millions of dollars): 2.6, 3.2, 2.2, 2.6, 2.2, 2.8, 2.3, 2.9, 2.5, 2.4, 1.2, 2.6, 1.6, 2.5, 3, 2.2, 2.1, 1.9, 3.2, 2.2, 2.6, 2, 2.5, 2.5, 3.1, 1.1, 1.3, 0.6, 1.4, 3.1, 1.9 Perform a hypothesis test using a 5% level of significance. Step 1: State the null and alternative hypotheses. H0: Ha:
The average McDonald's restaurant generates $2 million in sales each year with a standard deviation of 0.6. Courtney wants to know if the average sales generated by McDonald's restaurants in Tennessee is different than the worldwide average. She surveys 31 restaurants in Tennessee and finds the following data (in millions of dollars):
2.6, 3.2, 2.2, 2.6, 2.2, 2.8, 2.3, 2.9, 2.5, 2.4, 1.2, 2.6, 1.6, 2.5, 3, 2.2, 2.1, 1.9, 3.2, 2.2, 2.6, 2, 2.5, 2.5, 3.1, 1.1, 1.3, 0.6, 1.4, 3.1, 1.9
Perform a hypothesis test using a 5% level of significance.
Step 1: State the null and alternative hypotheses.
H0:
Ha:
(So we will be performing a ______ test.)
Step 2: Assuming the null hypothesis is true, determine the features of the distribution of point estimates using the Central Limit Theorem.
By the Central Limit Theorem, we know that the point estimates are ____ with distribution mean ______ and distribution standard deviation .
Step 3: Find the p-value of the point estimate.
P( )=P( )=
p-value=
Step 4: Make a Conclusion About the null hypothesis.
Since the p-value= _____ < or >= ________ =α, we ________ the null hypothesis.
- We cannot conclude that the mean sales of McDonald's restaurants in Tennessee differ from average McDonald's sales worldwide.
- We conclude that the mean sales of McDonald's restaurants in Tennessee differ from average McDonald's sales worldwide.
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