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The manager at the restaurants knows the movie ticket give away will cost him $1

ID: 3058117 • Letter: T

Question

The manager at the restaurants knows the movie ticket give away will cost him $15 per couple. He believes he can still make a profit if each couple spends more than $55. Using a sample of 36 customers, a sample mean of $60 and a population standard deviation of $15, conduct a hypothesis test (use alpha level of .05) to see if he should offer free movie tickets. What is your conclusion?

a)We reject the null hypothesis and believe the manager should Not offer the movie tickets.

b)We reject the null hypothesis and believe the manager should offer the movie tickets.

c)We fail to reject the null hypothesis and believe the manager should Not offer the movie tickets.

d)We adopt the null hypothesis and believe the manager should offer the movie tickets.

Explanation / Answer

The manager at the restaurants knows the movie ticket give away will cost him $15 per couple. He believes he can still make a profit if each couple spends more than $55. Using a sample of 36 customers, a sample mean of $60 and a population standard deviation of $15, conduct a hypothesis test (use alpha level of .05) to see if he should offer free movie tickets. What is your conclusion?

a)We reject the null hypothesis and believe the manager should Not offer the movie tickets.

b)We reject the null hypothesis and believe the manager should offer the movie tickets.

c)We fail to reject the null hypothesis and believe the manager should Not offer the movie tickets.

d)We adopt the null hypothesis and believe the manager should offer the movie tickets.