Question

A grocery store analyst is studying daily sales for establishments located along the Gulf coast. The daily sales are known to follow a normal distribution. A random sample of 35 stores exhibited a sample mean (in thousands of dollars) of 9.43. The population standard deviation (in thousands of dollars) is known to be 2.85. Suppose the analyst's status quo understanding is that daily sales for this class of establishment averages (in thousands of dollars) no more than 8.00.

1. What would the null hypothesis and alternate hypothesis be in this situation?
2. What is p-value test statistic (assume α = 0.05)? [Show your code in “R Code” section.]
3. Given your answers to A and B, what do the results of this analysis suggest about the analyst's status quo understanding? [Leave “R Code” and “Answer” sections blank. Include the phrase “accept null hypothesis” or “reject null hypothesis” along with a justification in a few sentences in “Comments” section.]

Answer 1

Note: The p-value is calculated from R-software.