Homework SourseSince food trucks have been gaining popularity Mi Casa Front
Since food trucks have been gaining popularity, Mi Casa Front Porch is testing a seasonal food truck for special events around the Phoenix Metropolitan area. The data gathered by the research team identified that the average menu item from food trucks was $6.50 and daily revenue at the events was $9500.00 with a standard deviation of $250.00. The team gathered data from 20 days that the food truck was operating. To be profitable, the food truck would need to earn more than the average. Develop the hypothesis and interpret the test statistic at a .05 level of significance to whether or not Mi Casa Front Porch should continue with their seasonal food truck.
Based on the data below, create and conduct the appropriate hypothesis test at a .05 significance level. Provide the hypothesis and interpretation of the results for the business scenario.
| Revenue |
| $9,525.35 |
| $9,633.55 |
| $10,322.01 |
| $15,011.50 |
| $9,099.50 |
| $10,342.22 |
| $11,765.83 |
| $8,325.40 |
| $9,525.60 |
| $10,622.60 |
| $11,732.86 |
| $13,455.55 |
| $10,222.60 |
| $9,626.40 |
| $11,001.00 |
| $15,235.65 |
| $13,548.84 |
| $10,249.71 |
| $14,854.76 |
| $9,131.22 |
Solution
Set Up Hypothesis
Null, H0: U=9500
Alternate,food truck would need to earn more than the average H1: U>9500
Test Statistic
Population Mean(U)=9500
Sample X(Mean)=11161.61
Standard Deviation(S.D)=2134.698
Number (n)=20
we use Test Statistic (t) = x-U/(s.d/Sqrt(n))
to =11161.61-9500/(2134.698/Sqrt(19))
to =3.481
| to | =3.481
Critical Value
The Value of |t | with n-1 = 19 d.f is 1.729
We got |to| =3.481 & | t | =1.729
Make Decision
Hence Value of | to | > | t | and Here we Reject Ho
P-Value :Right Tail - Ha : ( P > 3.481 ) = 0.00125
Hence Value of P0.05 > 0.00125,Here we Reject Ho
