Question

In: Statistics and Probability

Trends in Restaurant Take-Out A local restaurant does a pretty significant take-out business. According to the...

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).

Solutions

Expert Solution

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.   


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