An Entrepreneur Is Considering the Purchase of a Coin-Operated Laundry

question 189

Multiple Choice

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?

• A) Z-test of a population mean
• B) Z-test of a population proportion
• C) t-test of population mean
• D) t-test of a population proportion

---

Definitions:

Transaction

An agreement or communication carried out between parties to buy, sell, or exchange goods, services, or financial assets.

Revenue

Income that a business receives from its normal business activities.

Recorded

The action of documenting financial transactions in accounting records to keep an accurate and organized track of a company's financial activities and position.

Cash Received

The total amount of money, including cash, checks, and electronic transfers, that is received by a business during a specified period.