Question

A marketing consultant is hired by a major restaurant chain wishing to investigate the preferences and spending patterns of lunch customers. The CEO of the chain hypothesized that the average customer spends at least $13.50 on lunch. A survey of 25 customers sampled at one of the restaurants found the average lunch bill per customer to be xbar = $14.50. Based on previous surveys, the restaurant informs the marketing manager that the standard deviation is σ=σ= $3.50. To address the CEO's conjecture, the marketing manager carried out a hypothesis test of H0:μ=H0:μ= $13.50, Ha:μ>Ha:μ> $13.50, and obtained a

P-value = 0.077. To illustrate his results, the director also wanted to calculate a 95% confidence interval with a margin of error m = $1.00. The required sample size equals:

	A.	30.
	B.	100.
	C.	25.
	D.	48.

Answer 1