An entrepreneur is considering the purchase of a coin-operated laundry. The current owner claims that over the past 5 years, the average daily revenue was $675 with a standard deviation of $75. A sample of 30 days reveals a daily average revenue of $625 and a standard deviation of $70. Which of the following tests will be the most appropriate?
A) separate-variance t test
B) t test for mean
C) Z test for proportion
D) pooled-variance t test

Question

Quizplus · Accepted Answer

We are given the population mean and standard deviation, and we are testing the sample mean against the population mean. Therefore, a t test for mean is the most appropriate choice. The separate-variance t test and pooled-variance t test are used when comparing two sample means, and the Z test for proportion is used when testing a proportion.

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