SOLUTION: The former manager of the coffee shop in a local bookstore claimed that the mean daily sales were $3,250. Heather Davis is hired as the new department manager, and she suspects tha

Question 1161498: The former manager of the coffee shop in a local bookstore claimed that the mean daily sales were $3,250. Heather Davis is hired as the new department manager, and she suspects that the former manager’s claim is high. Having taken a statistics course, Heather randomly selects 11 days and finds that the average sales for those days was $2,956.14 with a sample standard deviation of $370. Assuming the sales data are normally distributed, test the hypothesis that the mean daily sales is lower than $3,250. Use α = 0.01.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
With all the assumptions in place
test statistic is a t 0.99, df=10 =(2956.14-3250)/370/sqrt(11)
critical value is t<-2.764 for a 1 way test
t=-293.86*sqrt(11)/370
=-2.634
fail to reject Ho; there is insufficient evidence to state that the mean daily sales is < $3250
p=0.012
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