A Coffee Shop Franchise Owner Is Looking at Two Possible

question 110

Short Answer

A coffee shop franchise owner is looking at two possible locations for a new shop. To help him decide, he looks at the number of pedestrians that go by each of the two locations in one-hour segments. At location A, counts are taken for 35 one-hour units, with a mean number of pedestrians of 421 and a sample standard deviation of 122. At the second location (B), counts are taken for 50 one-hour units, with a mean number of pedestrians of 347 and a sample standard deviation of 85. Assume the two population variances are not known but are equal. Set up the null hypothesis to test the claim that both sites have the same number of pedestrians.

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Definitions:

OASDI

An acronym for Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides benefits to retired people, the disabled, and survivors of deceased workers.

Medicare

A federal health insurance program in the United States primarily for people aged 65 and older, as well as for some younger people with disabilities.

FUTA

FUTA (Federal Unemployment Tax Act) is a United States federal law that imposes a payroll tax on any business with employees, the funds are used to pay unemployment benefits.

SUTA

State Unemployment Tax Act, referring to state-level taxes that employers must pay towards state unemployment insurance programs.