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Big State University operates a large cafeteria located in the heart of campus.

ID: 3364405 • Letter: B

Question

Big State University operates a large cafeteria located in the heart of campus. The university's financial administration has initiated a study into the daily revenue generated by the cafeteria. It is widely accepted that the standard deviation of daily revenue is $3,000. The cafeteria's accountant has speculated that the average daily revenue is $70,000. As an analyst hired by Big State University, you have formulated the following hypothesis test: Ho: = $ 70,000 Hy * $ 70,000 You intend to use a level of significance of 0.2. Identify the critical region for this test. O (1.28,o) 1.64)ua.64,+ ) O (-oo, - 1.28)

Explanation / Answer

Since the alternative hypothesis has not equal sign, this is a two tailed test.

For 0.2 significance level, critical z value = +/-1.28

Answer: Option A. (-Inf, - 1.28)U(1.28, + Inf)