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 and a standard deviation of $70.Which of the following tests will be the most appropriate?
A)t test for the mean.
B)Z test for the proportion.
C)Pooled-variance t test.
D)Separate-variance t test.

Question

Quizplus · Accepted Answer

A t-test for the mean is most appropriate because the sample size is small (n < 30) and the population standard deviation is unknown, requiring the use of the sample standard deviation.

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