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In: Statistics and Probability

An inexpensive restaurant featuring steak dinners makes most of its profit from side orders suggested to...

An inexpensive restaurant featuring steak dinners makes most of its profit from side orders suggested to diners by the staff. As an experiment, the restaurant owner rewarded each server with 10% of the price of all side orders made through the server. After 10 days, the owner computed the side-order volume per customer for each of 41 servers. The data are in column 1 of the Excel data file named ‘Side Orders’. The reward policy will be profitable if the mean volume is more than $2.40 per customer. At the 10% level of significance, is there a strong evidence in the data that the policy will, in fact be profitable? Please show the necessary steps and explain your conclusion

Volume

Server

3.62

1

2.28

2

2.78

3

3.10

4

2.69

5

2.24

6

3.76

7

2.60

8

3.30

9

2.54

10

2.51

11

3.31

12

2.76

13

3.79

14

2.17

15

2.77

16

3.47

17

2.04

18

2.61

19

2.99

20

2.48

21

3.10

22

3.25

23

5.20

24

2.67

25

2.48

26

2.76

27

2.62

28

1.31

29

2.01

30

2.35

31

2.52

32

2.67

33

2.79

34

2.28

35

3.59

36

2.77

37

2.43

38

3.01

39

2.67

40

2.67

41

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