In: Statistics and Probability
Trends in Restaurant Take-Out
A local restaurant does a pretty significant take-out business. According to the first few years that the business was open, the following table gives the percentages of take-out orders happen each day of the week.
Sunday | Monday | Tuesday | Wednesday | Thursday | Friday | Saturday |
14% | 9% | 8% | 11% | 15% | 21% | 22% |
They recently noticed that they have been short drivers some days but have been not as busy other days. In a pool of 600 orders, this is the distribution of the number of to-go orders that occurred on each day.
Sunday | Monday | Tuesday | Wednesday | Thursday | Friday | Saturday |
120 | 80 | 45 | 82 | 60 | 80 | 133 |
Test the hypothesis that the original distribution is followed at the 5% level of significance. Does the test suggest that the distribution based on recent data has changed? Show all calculations and be sure to list all important elements of the hypothesis test (Null and alternative hypotheses, critical region, test statistic, decision, and conclusion).
Category | Observed Frequency (O) | Expected Frequency (E) | (O-E)²/E |
Sunday | 120 | 600 * 0.14 = 84 | (120 - 84)²/84 = 15.4286 |
Monday | 80 | 600 * 0.09 = 54 | (80 - 54)²/54 = 12.5185 |
Tuesday | 45 | 600 * 0.08 = 48 | (45 - 48)²/48 = 0.1875 |
Wednesday | 82 | 600 * 0.11 = 66 | (82 - 66)²/66 = 3.8788 |
Thursday | 60 | 600 * 0.15 = 90 | (60 - 90)²/90 = 10 |
Friday | 80 | 600 * 0.21 = 126 | (80 - 126)²/126 = 16.7937 |
Saturday | 133 | 600 * 0.22 = 132 | (133 - 132)²/132 = 0.0076 |
Total | 600 | 600 | 58.8146 |
Null and Alternative hypothesis:
Ho: Proportions are same.
H1: Proportions are different.
Test statistic:
χ² = ∑ ((fo-fe)²/fe) = 58.8146
df = n-1 = 6
Critical value:
χ²α = CHISQ.INV.RT(0.05, 6) = 12.5916
Reject ho, if χ² > 12.5916.
Decision:
χ² =58.8146 > 12.5916, Reject the null
hypothesis
Conclusion:
There is enough evidence to conclude that the distribution based on recent data has changed at 0.05 significance level.