A Hairdresser Believes That She Is More Profitable on Tuesdays

question 11

Essay

A hairdresser believes that she is more profitable on Tuesdays, her lucky day of the week. She knows that, on average, she has a daily revenue of $250. She randomly samples the revenue from eight Tuesdays and finds she takes in $260, $245, $270, $260, $295, $235, $270, and $265. Assume that daily revenue is normally distributed.
A) Specify the population parameter to be tested.
B) Specify the null and alternative hypotheses to test the hairdresser's claim.
C) Calculate the sample mean revenue and the sample standard deviation.
D) Compute the value of the appropriate test statistic.
E) At the 10% significance level, calculate the p-value.
F) At the 10% significance level, is the hairdresser's claim supported by the data?

• A) Specify the population parameter to be tested.
• B) Specify the null and alternative hypotheses to test the hairdresser's claim.
• C) Calculate the sample mean revenue and the sample standard deviation.
• D) Compute the value of the appropriate test statistic.
• E) At the 10% significance level, calculate the p-value.
• F) At the 10% significance level, is the hairdresser's claim supported by the data?

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Definitions:

Scanlon Plan

A type of gain-sharing program that focuses on improving productivity and sharing the resulting incremental earnings with employees.

Normal Labour Cost

The typical expenses associated with compensating employees, including wages, salaries, and benefits, under standard operational conditions.

Gain-Sharing Plan

A compensation strategy where employees receive financial bonuses based on improvements in the company’s performance, encouraging teamwork and efficiency.

Nonmonetary Reward Plans

Incentive systems that provide rewards or recognition in forms other than direct payment, such as professional development, privileges, or awards.