Question

The Mean Corporation's statisticians would like to construct a hypothesis test for the mean annual profit (μ) earned by health-drink franchises. A random sample of 60 franchises were chosen and their annual profit for the previous financial year was recorded. The mean annual profit for the sample was calculated as $90,300. The hypotheses that will be used by the statisticians are H0: μ = 89,000 and Ha: μ > 89,000.a.Calculate the test statistic (z) that corresponds to the sample and hypotheses.
Give your answer to 3 decimal places. z =

Answer 1

Missing Part of Question

Juice that is opened. It is known that the annual profits earned by health-drink franchises has a population standard deviation of $8,700

........

Answer:

z = 1.157

Step-by-step explanation:

Given

Annual profit as calculated = $90,300.

H0: μ = 89,000

Ha: μ > 89,000

σ = 8700

n = 60

Calculate the test statistic (z) that corresponds to the sample and hypotheses.

Test statistic (z) is calculated by

z = (x - μ)/(σ/√n)

Where x = 90,300

μ = 89,000

σ = 8700

n = 60

z = (90,300 - 89,000)/(8700/√60)

z = 1.157443298866584

z = 1.157 ----- Approximated