Exhibit 10.3.A restaurant chain has two locations in a medium-sized town and,believing that it has oversaturated the market for its food,is considering closing one of the restaurants.The manager of the restaurant with a downtown location claims that his restaurant generates more revenue than the sister restaurant by the freeway.The CEO of this company,wishing to test this claim,randomly selects 36 monthly revenue totals for each restaurant.The revenue data from the downtown restaurant have a mean of $360,000 and a standard deviation of $50,000,while the data from the restaurant by the freeway have a mean of $340,000 and a standard deviation of $40,000.Assume there is no reason to believe the population standard deviations are equal,and let and denote the mean monthly revenue of the downtown restaurant and the restaurant by the freeway,respectively. Refer to Exhibit 10.3.Compute the value of the appropriate test statistic to analyze the claim.

Question

Exhibit 10.3.A restaurant chain has two locations in a medium-sized town and,believing that it has oversaturated the market for its food,is considering closing one of the restaurants.The manager of the restaurant with a downtown location claims that his restaurant generates more revenue than the sister restaurant by the freeway.The CEO of this company,wishing to test this claim,randomly selects 36 monthly revenue totals for each restaurant.The revenue data from the downtown restaurant have a mean of $360,000 and a standard deviation of $50,000,while the data from the restaurant by the freeway have a mean of $340,000 and a standard deviation of $40,000.Assume there is no reason to believe the population standard deviations are equal,and let  and  denote the mean monthly revenue of the downtown restaurant and the restaurant by the freeway,respectively. Refer to Exhibit 10.3.Compute the value of the appropriate test statistic to analyze the claim.

Quizplus · Accepted Answer

The Answer of Exhibit 10.3.A restaurant chain has two locations in a medium-sized town and,believing that it has oversaturated the market for its food,is considering closing one of the restaurants.The manager of the restaurant with a downtown location claims that his restaurant generates more revenue than the sister restaurant by the freeway.The CEO of this company,wishing to test this claim,randomly selects 36 monthly revenue totals for each restaurant.The revenue data from the downtown restaurant have a mean of $360,000 and a standard deviation of $50,000,while the data from the restaurant by the freeway have a mean of $340,000 and a standard deviation of $40,000.Assume there is no reason to believe the population standard deviations are equal,and let  and  denote the mean monthly revenue of the downtown restaurant and the restaurant by the freeway,respectively. Refer to Exhibit 10.3.Compute the value of the appropriate test statistic to analyze the claim.