An entrepreneur is considering the purchase of a coin-operated laundry. The current owner claims that over the past 5 years, the mean daily revenue was $675 with a standard deviation of $75. A sample of 30 days reveals a daily mean revenue of $625. If you were to test the null hypothesis that the daily mean revenue was $675, which test would you use?
A) Z-test of a population mean
B) Z-test of a population proportion
C) t-test of a population mean
D) t-test of a population proportion

Question

Quizplus · Accepted Answer

Since the population standard deviation is known and the sample size is large (n=30), a Z-test of a population mean is appropriate.

An Entrepreneur Is Considering the Purchase of a Coin-Operated Laundry