The average McDonald's restaurant generates $3 million in sales each year with a standard deviation of 0.4. Russell wants to know if the average sales generated by McDonald's restaurants in Nebraska is different than the worldwide average. He surveys 26 restaurants in Nebraska and finds the following data (in millions of dollars): 3.3, 3.2, 3.5, 3.3, 3.3, 3.4, 2.8, 3.5, 3.4, 2.5, 2.5, 3.6, 2.9, 2.9, 2.9, 3.5, 3.4, 2.7, 2.2, 2.5, 3.5, 3.6, 3.5, 3.7, 3.6, 2.8
The average McDonald's restaurant generates $3 million in sales each year with a standard deviation of 0.4. Russell wants to know if the average sales generated by McDonald's restaurants in Nebraska is different than the worldwide average. He surveys 26 restaurants in Nebraska and finds the following data (in millions of dollars):
3.3, 3.2, 3.5, 3.3, 3.3, 3.4, 2.8, 3.5, 3.4, 2.5, 2.5, 3.6, 2.9, 2.9, 2.9, 3.5, 3.4, 2.7, 2.2, 2.5, 3.5, 3.6, 3.5, 3.7, 3.6, 2.8
Perform a hypothesis test using a 10% level of significance.
Step 1: State the null and alternative hypotheses.
H0:(p or u)(<,> #)?
Ha: p or u)(<,> #)?
(So we will be performing a left or right or 2 tail 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 .?
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