The Owners of a Coffee Stand Hypothesize That the Median $\begin{array} { l l l l l l l l l l l l l l l } 18 & 24 & 21 & 17 & 22 & 23 & 24 & 22 & 19 & 22 & 21 & 23 & 21 & 16 & 21 \end{array}$

question 114

Essay

The owners of a coffee stand hypothesize that the median number of sales during the hour from 10:00 AM to 11:00 AM is 2 0. They tabulated the following random sample of the number of sales during the time period.
$\begin{array} { l l l l l l l l l l l l l l l } 18 & 24 & 21 & 17 & 22 & 23 & 24 & 22 & 19 & 22 & 21 & 23 & 21 & 16 & 21 \end{array}$
Use the $\alpha = 0.05$ level of significance and provide the following to provide the fol information:
a. State appropriate null and alternate hypotheses.
b. Compute the test statistic.
c. Find the critical value.
d. State a conclusion.

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Definitions:

Short-Run Supply Curve

A supply curve that shows the quantity of a product a firm in a purely competitive industry will offer to sell at various prices in the short run; the portion of the firm’s short-run marginal cost curve that lies above its average-variable-cost curve.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced.

Average Variable Cost

The total variable cost of production divided by the quantity of output produced, representing the variable cost per unit of output.

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product, leading to price determination by market forces.