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 population 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 and decide not to reject the null hypothesis,what can you conclude?
A)There is not enough evidence to conclude that the daily mean revenue was $675.
B)There is not enough evidence to conclude that the daily mean revenue was not $675.
C)There is enough evidence to conclude that the daily mean revenue was $675.
D)There is enough evidence to conclude that the daily mean revenue was not $675.

Question

Quizplus · Accepted Answer

If we decide not to reject the null hypothesis, we cannot conclude that the daily mean revenue was exactly $675. The sample mean of $625 falls within a reasonable range of deviation from the population mean of $675, especially given the population standard deviation of $75. Therefore, we cannot conclude that the daily mean revenue was not $675 either. The best we can say is that we do not have enough evidence to reject the null hypothesis that the daily mean revenue was $675.

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