The Owner of a Local Nightclub Has Recently Surveyed a Random

question 86

Multiple Choice

The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of
The club.She would now like to determine whether or not the mean age of her customers is
Greater than 30.If so, she plans to alter the entertainment to appeal to an older crowd.If not, no
Entertainment changes will be made.Suppose she found that the sample mean was 30.45 years
And the sample standard deviation was 5 years.If she wants to have a level of significance at 0.01
What conclusion can she make?

• A) There is not sufficient evidence that the mean age of her customers is greater than 30.
• B) There is sufficient evidence that the mean age of her customers is greater than 30.
• C) There is not sufficient evidence that the mean age of her customers is not greater than 30.
• D) There is sufficient evidence that the mean age of her customers is not greater than 30.

---

Definitions:

Initial Outlays

The initial investments or costs incurred when starting a project, business, or investment.

Net Present Value

A financial measure that assesses an investment's profitability by calculating the difference between the present value of cash inflows and the present value of cash outflows throughout a certain timeframe.

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Cost of Capital

The rate of return a company must pay investors to finance its assets, often used as a benchmark to evaluate the profitability of investments.