The average McDonald's restaurant generates $3.4 million in sales each year with a standard deviation of 1. Crystal wants to know if the average sales generated by McDonald's restaurants in West Virginia is different than the worldwide average. She surveys 26 restaurants in West Virginia and finds the following data (in millions of dollars): 2.5, 3.1, 2.1, 3.8, 3.4, 2.7, 3.5, 2.6, 2.5, 2.5, 3.6, 2.6, 1.4, 3.6, 2.4, 1.7, 4.3, 4.8, 2, 3.6, 4.5, 3.2, 4.1, 3, 2.2, 2.7
The average McDonald's restaurant generates $3.4 million in sales each year with a standard deviation of 1. Crystal wants to know if the average sales generated by McDonald's restaurants in West Virginia is different than the worldwide average. She surveys 26 restaurants in West Virginia and finds the following data (in millions of dollars):
2.5, 3.1, 2.1, 3.8, 3.4, 2.7, 3.5, 2.6, 2.5, 2.5, 3.6, 2.6, 1.4, 3.6, 2.4, 1.7, 4.3, 4.8, 2, 3.6, 4.5, 3.2, 4.1, 3, 2.2, 2.7
Perform a hypothesis test using a 1% level of significance.
Step 1: State the null and alternative hypotheses.
H0:H0:
Ha: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
Step 3: Find the pp-value of the point estimate.
P(P( )=P()=P( )=)=
pp-value==
Step 4: Make a Conclusion About the null hypothesis.
Since the pp-value== =α=α, we the null hypothesis.
- We cannot conclude that the mean sales of McDonald's restaurants in West Virginia differ from average McDonald's sales worldwide.
- We conclude that the mean sales of McDonald's restaurants in West Virginia differ from average McDonald's sales worldwide.
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