Question

An entrepreneur is considering the purchase of a coin-operated laundry. The current owner claims that over the past 5 years, the mean daily revenue was $675 with a population standard deviation of $75. A sample of 30 days reveals a daily mean revenue of $625. If you were to test the null hypothesis that the daily mean revenue was $675, which test would you use? Group of answer choices
a.t test of a population proportion
b.Z test of a population mean
c.t test of population mean
d.Z test of a population proportion

Answer 1

Answer:

The answer is B: Z test of a population mean

Step-by-step explanation:

This is the most appropriate test to use. This is because the standard deviation is known from the question as $75 and we are trying to compare a hypothesized mean of $675 from the null hypothesis to a sample mean of $625. Thus the Z test of a population mean is the test required to be used here.