Solved

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?

Definitions:

Fringe Benefits

Additional benefits supplementing an employee's salary, such as health insurance, pensions, and paid vacations.

Wagner Act

Also known as the National Labor Relations Act of 1935, it is a foundational statute of US labor law which guarantees basic rights of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes.

Taft-Hartley Act

A 1947 federal law that restricted the activities and power of labor unions in the United States.

Landrum-Griffin Act

A 1959 U.S. federal law formally known as the Labor-Management Reporting and Disclosure Act, which aims to protect union members' rights and promote democracy within labor organizations.