Answer:
We conclude that the daily average revenue was actually $675.
Step-by-step explanation:
We are given that the current owner claims that over the past 5 years, the average daily revenue was $675 with a standard deviation of $75.
A sample of 30 days reveals a daily average revenue of $625.
<u><em>Let </em></u><u><em> = daily average revenue.</em></u>
So, Null Hypothesis, :
= $675 {means that the daily average revenue was $675}
Alternate Hypothesis, :
$675 {means that the daily average revenue was different from $675}
The test statistics that would be used here <u>One-sample z test statistics</u> as we know about the population standard deviation;
T.S. = ~ N(0,1)
where, = sample daily average revenue = $625
= population standard deviation = $75
n = sample of days = 30
Since, we are given that we have decided not to reject the null hypothesis which leads us to the conclusion that the daily average revenue was actually $675.