Question

A food truck operator has traditionally sold 75 bowls of noodle soup each day. He moves to a new location and after a week sees that he has averaged 85 bowls of noodle soup sales each day. He runs a one-sided hypothesis test to determine if his daily sales at the new location have increased. The p-value of the test is 0.031. How should he interpret the p-value?
A) There is a 3.1% chance that the true mean of soup sales at the new location is 85 bowls a day.
B) There is a 96.9% chance that the true mean of soup sales at the new location is greater than 75 bowls a day.
C) There is a 96.9% chance that the sample mean of soup sales at the new location is 85 bowls a day.
D) There is a 3.1% chance of obtaining a sample with a mean of 85 or higher assuming that the true mean sales at the new location is still equal to or less than 75 bowls a day.
E) There is a 96.9% chance that the true mean of soup sales at the new location is within 3.1 bowls of 85 bowls a day.+9

Answer 1

Answer: There is a 3.1% chance of obtaining a sample with a mean of 85 or higher assuming that the true mean sales at the new location is still equal to or less than 75 bowls a day.

Given:

Food Truck

Old location:

Sold =  75 bowls of noodle soup

New location:

Sold =  85 bowls of noodle soup

p-value = 0.031

Interpretation:

Under the given circumstances and options, we state that there is a 3.1% chance of obtaining a sample that has a mean of 85 i.e. P(X=85) or in similar cases higher where we assume that the true mean sales at the new location is still equal to or less than 75 i.e. [P(X=75) ≤ P(X=85)] bowls a day.