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

question 96

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 and decide not to reject the null hypothesis,
What can you conclude?

• A) There is not enough evidence to conclude that the daily mean revenue was $675.
• B) There is not enough evidence to conclude that the daily mean revenue was not $675.
• C) There is enough evidence to conclude that the daily mean revenue was $675.
• D) There is enough evidence to conclude that the daily mean revenue was not $675.

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Definitions:

Average Revenue

Average revenue is the revenue earned per unit of output sold, calculated by dividing total revenue by the total number of units sold.

Fixed Cost

Fixed costs are business expenses that remain constant regardless of the levels of production or sales, such as rent, salaries, or loan payments.

Variable Cost

Costs that vary directly with the level of production or output.

Continue to Operate

The decision by a company or business to keep running its operations despite various challenges.