An entrepreneur is considering the purchase of a coin-operated laundry. The current owner claims that over the past five 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

Choosing not to reject the null hypothesis means that we have failed to find enough evidence to reject the claim that the daily mean revenue was $675. It does not necessarily mean that we have confirmed that the daily mean revenue was $675, but rather that we do not have sufficient evidence to conclude otherwise. Therefore, option B is the best choice.

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