An entrepreneur is considering the purchase of a coin-operated laundry.The current owner claims that over the past five 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.If you were to test the null hypothesis that the daily average revenue was $675,which test would you use?
A) Z test of a population proportion.
B) t test of a population mean.
C) Z test of a population mean.
D) t test of a population proportion.

Question

Quizplus · Accepted Answer

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

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