A restaurant chain has two locations in a medium sized town

Last updated: 12/21/2022

A restaurant chain has two locations in a medium sized town and believing that it has oversaturated the market for its food is considering closing one of the restaurants The manager of the restaurant with a downtown location claims that his restaurant generates more revenue than the sister restaurant by the freeway The CEO of this company wishing to test this claim randomly selects 36 monthly revenue totals for each restaurant The revenue data from the downtown restaurant have a mean of 360 000 and a standard deviation of 50 000 while the data from the restaurant by the freeway have a mean of 340 000 and a standard deviation of 40 000 Assume there is no reason to believe the population standard deviations are equal and let 1 and 22 denote the mean monthly revenue of the downtown restaurant and the restaurant by the freeway respectively Refer to Exhibit 10 3 At the 5 significance level does the evidence support the manager s claim O O No since the test statistic value is less than the critical value Yes since the test statistic value is less than the critical value No since the test statistic value is greater than the critical value Yes since the test statistic value is greater than the critical value