Question

In: Operations Management

Your company has entered a new area, which is demographically similar to the area where you...

Your company has entered a new area, which is demographically similar to the area where you do business. The mean for sales each day in your current areas is $2000. You randomly selected 25 daily sales in the new area. The sample mean for this group is $2100 with a standard deviation of $250. At α = 0.05.

a.    Test to see if the average sale in the new area is different than the average sale in the current area.

b.    One of the directors is concerned that the sales in this new area may be higher. Test if the concern is valid?

Solutions

Expert Solution

a. vs

As n is less than 30 and population varaince not known we will use t distribution

The t-critical values for a two-tailed test, for a significance level of ?=0.05 are

tc?=?2.064 and tc?=2.064

Graphically

As t value is not in rejection region we fail to reject null hypothesis

b.

a. vs

As n is less than 30 and population varaince not known we will use t distribution

The t-critical value for a right-tailed test, for a significance level of ?=0.05 is

tc?=1.711

Graphically

As t statistics falls in the region region we reject the null hypothesis

keosha answered 1 year ago
Next > < Previous

Related Solutions

You work at a Hospital in the Weight Management Department. A new patient has entered your...
You work at a Hospital in the Weight Management Department. A new patient has entered your program to lose weight and manage their diagnosis of metabolic syndrome. Below are the patient characteristics. (10 points) _______________________________________________________________________________________________ Dx: Obesity, Hypertension, hypertriglyceridemia Age: 35 years old        Gender: Male Race: African American               BMI: 42 kg/m2        SBP: 147 mmHg      DBP: 86 mmHg      TG: 245 mg/dl Meds: Enalapril .1 mg/kg/day (2x per day); Niaspan 1500 mg per day, Qsymia 7.5/46 mg Dr. Goal: Reduce body...
An industrial area has several companies that use similar chemicals. Groundwater in this area has been...
An industrial area has several companies that use similar chemicals. Groundwater in this area has been found to be contaminated, and several companies are disputing who is responsible. (The responsible party must pay for remediation.) Two of the chemicals used by several companies are TCE and dioxane, but the companies often use different ratios of these chemicals. One company uses 3.6 times more TCE than dioxane, and the standard deviation of the TCE:dioxane ratio in its supply drums was 0.3....
Imagine that you have recently finished your MBA and have a company that has entered the...
Imagine that you have recently finished your MBA and have a company that has entered the arena of Project Management. During your interview, you are told that project management is not something that the company has always done. In fact, the company began as a retail software design company. As the company grew from small to medium-sized, it became apparent that they needed to employ Project Managers to help their clients rollout the use of their software and not leave...
Your company has sent you on business to the Los Angeles (LA) metropolitan area. Upon your...
Your company has sent you on business to the Los Angeles (LA) metropolitan area. Upon your arrival at LAX, you make your way to the Klunker Car Rental counter. As usual, the line at the counter is long, so you enter and begin your wait. While waiting you notice that Klunker is offering a special deal on gas. They are selling gas for $1.579 per gallon. However, you must purchase a full tank when you rent the car. Klunker also...
Your company has sent you on business to the Los Angeles (LA) metropolitan area. Upon your...
Your company has sent you on business to the Los Angeles (LA) metropolitan area. Upon your arrival at LAX, you make your way to the Klunker Car Rental counter. As usual, the line at the counter is long, so you enter and begin your wait. While waiting you notice that Klunker is offering a special deal on gas. They are selling gas for $1.579 per gallon. However, you must purchase a full tank when you rent the car. Klunker also...
A US company has entered into an interest rate swap with a dealer in which the...
A US company has entered into an interest rate swap with a dealer in which the notional principal is $50 million. The company will pay a floating rate of LIBOR and receive a fixed rate of 5.75%. Interest is paid semi-annually, and the current LIBOR=5.15%. What is the total amount that the asset manager will pay to (or receive from) the dealer EVERY half of the year? Assume that every year we have 360 days, and each semi-annual payment is...
In a paragraph share an area where you feel you could use some encouragement in your...
In a paragraph share an area where you feel you could use some encouragement in your life.
1. Checking accts & MMDA's are very similar. Where would you put your $ & why?...
1. Checking accts & MMDA's are very similar. Where would you put your $ & why? 2.What reserve requirement would you put on banks? Why? Does the type of loans the bank make effect your decision? 3. If I rates are increasing is that a + or - for bank earnings? Answer all 3 please thank you!
The Financial Director of your company has recently asked you to attend a conference where a...
The Financial Director of your company has recently asked you to attend a conference where a paper on Balanced Scorecards entitled ‘Linking Management Accounting with Strategy’ was presented. At the next Board meeting of the company you have been asked to: (a) Discuss what the four perspectives of a Balanced Scorecard are, and how they are translated into performance measures and targets. (b) Critically appraise the success of the application of Balanced Scorecards in business organisations and whether they are...
When cross sectional area of the head group and acyl side chain is similar, which of...
When cross sectional area of the head group and acyl side chain is similar, which of the following lipid aggregates formation is favored? Seleccione una: a. Liposome b. Micelles c. Bilayer d. Myelin sheath e. Any of these may be formed, it depends on the acyl side chain polarity
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT