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In: Statistics and Probability

A chocolate company markets a 500g box of chocolates to large retail stores for Valentine’s Day....

A chocolate company markets a 500g box of chocolates to large retail stores for Valentine’s Day. This year, they project the mean order quantity will be greater than last year. Last year, the mean order quantity was 500 boxes per large retail store. This year, a random sample of 4 large retail stores gave a sample mean order quantity of 490 boxes. Assume a population standard deviation of 50 boxes, and that the mean order quantity follows a Normal distribution.

Conduct a hypothesis test using the critical value method to determine whether this year’s population mean order quantity is more than 10% lower than last year’s. HINT: What is meant by “more than 10% lower”? For example, it might be 10.8885% lower, or 14.68% lower, etc. What does that mean in terms of “number of boxes”? You have to figure that out to answer this question.

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orchestra answered 2 years ago
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