Question

Historically consumers purchase a household average of 7.8 pounds of salmon a month. Your client, a consortium of farm raised Atlantic salmon producers, has begun feeding their farm raised salmon a special, (but expensive) feed that has a pigment in it that will turn the flesh of the farm raised Atlantic salmon (normally pink) to a deep red that is similar to the color of wild caught pacific salmon. They predict that the introduction of this enhanced farm raised salmon sold at a lower price than wild will increase the overall amount of salmon sold per household. You have fielded a survey since the pigmented salmon hit the market with 800 completes that has found that households are now purchasing 7.9 pounds of salmon per month, with a standard deviation of 2.5 pounds. Use this data to test the hypothesis that the average number of pounds of salmon bought per household is 7.8 pounds or less. Use a significance level of .05.

Answer 1

We have used One sample t-Test to test hypothesis as population mean is unkown. Following are the steps followed for the same:

Thus, at 0.05 significance level, there is not enough evidence to warrant the rejection of claim that the average number of pounds of salmon bought per household is 7.8 pounds or less.