The Daily Revenue from the Sale of Fried Dough at a Local

question 99

Multiple Choice

The daily revenue from the sale of fried dough at a local street vendor in Boston is known to be normally distributed with a known standard deviation of $120. The revenue on each of the last 25 days is noted, and the average is computed as $550. A 95% confidence interval is constructed for the population mean revenue. If the data from the last 40 days had been used, then the resulting 95% confidence intervals would have been ________.

• A) wider, with a larger probability of reporting an incorrect interval
• B) wider, with the same probability of reporting an incorrect interval
• C) narrower, with a larger probability of reporting an incorrect interval
• D) narrower, with the same probability of reporting an incorrect interval

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Definitions:

Alternative Hypotheses

In statistical hypothesis testing, it is the hypothesis that proposes a difference or effect, in contrast to the null hypothesis which proposes no effect or relationship.

Type II Error

Refers to the error that occurs when a statistical test fails to reject a false null hypothesis.

Type I Error

Falsely rejecting a true null hypothesis, widely recognized as a "false positive."

Control Limits

The bounds used in control charts to signal when a process is in or out of control, based upon the statistical properties of the monitored process.