A Restaurant Chain Has Two Locations in a Medium-Sized Town

question 88

Multiple Choice

A restaurant chain has two locations in a medium-sized town and, believing that it has oversaturated the market for its food, is considering closing one of the restaurants. The manager of the restaurant with a downtown location claims that his restaurant generates more revenue than the sister restaurant by the freeway. The CEO of this company, wishing to test this claim, randomly selects 36 monthly revenue totals for each restaurant. The revenue data from the downtown restaurant have a mean of $360,000 and a standard deviation of $50,000, while the data from the restaurant by the freeway have a mean of $340,000 and a standard deviation of $40,000. Assume there is no reason to believe the population standard deviations are equal, and let μ₁ and μ₂ denote the mean monthly revenue of the downtown restaurant and the restaurant by the freeway, respectively. Which of the following hypotheses should be used to test the manager's claim?

• A) H₀: µ₁ - µ₂ ≤ 0, H_A: µ₁ - µ₂ > 0
• B) H₀: µ₁ - µ₂ ≥ 0, H_A: µ₁ - µ₂ < 0
• C) H₀: µ₁ - µ₂ = 0, H_A: µ₁ - µ₂ ≠ 0
• D) H₀: µ₁ - µ₂ > 0, H_A: µ₁ - µ₂ ≤ 0

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Definitions:

Nasal Cavity

The large air-filled space above and behind the nose in the middle of the face, which filters, warms, and humidifies inhaled air.

Soft Palate

The Soft Palate is the soft tissue constituting the back of the roof of the mouth, separating the mouth from the nasopharynx, and is crucial in swallowing and speech.

Hard Palate

The bony front part of the palate forming the roof of the mouth, separating the oral and nasal cavities.

Nasal Cavity

The nasal cavity is a large air-filled space behind the nose, involved in breathing, filtering, warming, and humidifying inhaled air; it also houses olfactory receptors involved in the sense of smell.