Question

In: Statistics and Probability

5. Fancy Fish, a fine dining upscale restaurant in Northridge, California and 2016 Open Table Diners’...

5. Fancy Fish, a fine dining upscale restaurant in Northridge, California and 2016 Open Table Diners’ Choice award winner, is enjoying its eighteenth season of providing delectable food, exceptional service, and beautiful outdoor dining experiences. “Saturday - Half-off Bottled Wine Night” has made Fancy Fish one of the San Fernando Valley’s favorite restaurants. Every Saturday night, guests can enjoy half-off every bottle of wine on the wine list while dining in the restaurant or on the terrace. The owner began offering “Saturday - Half-off Bottled Wine Night” in 2010 as an incentive for guests to dine at Fancy Fish when the economy was in a recession. Now that the economy is booming, the owner is considering whether the promotion should be continued, or even expanded. One concern is the effect that the promotion is having on the overall revenue generated from sales to the participants.

A random sample of 28 checks was collected over the course of one month of Saturday nights. Fourteen checks were from customers participating in the half-off promotion, and the other 14 checks were from customers not participating. The total revenue from each check (less alcohol, tax, and tip) is presented below. Do these data present sufficient evidence that the checks of participants is significantly different from checks of non-participants? What is your recommendation to the owner regarding the status of the promotion?

With Wine Discount W/O Wine Discount

35 46

35 44

36 29

36 29

48 29

29 60

36 64

43 47

24 47

13 49

36 53

50 51

22 44

32 36

Solutions

Expert Solution

Ho :       v/s       H1 :

Let X be the checks of participants and Y be the checks of non-participants

The critical value of t at level of significance 0.05(two tailed) and 26 ( 14+14-2) degrees of freedom is -2.056

Hence t-value lies in the rejection region. We reject Ho.

orchestra answered 2 years ago
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