Anne has recently taken over her grandparents bakery business. She is learning the new business...
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Anne has recently taken over her grandparents bakery business. She is learning the new business and wants to continue the past success of the bakery which has been in her family for over fifty years. Currently, the bakerys primary products are bread, cakes, cookies, cupcakes, doughnuts, muffins, pies, and rolls. Anne is curious to see what the average daily sales are at her store. She believes that it is around $1600. Anne collects data from the past 50 days. Table 4 below displays the total daily sales for the past fifty days. Assume this data comes from a normally distributed population where the population standard deviation is unknown. In addition, Anne is wondering whether she should add additional breakfast items such as French toast and Table 4: Total Daily Sales egg sandwiches. There are many businesses in the downtown area near her bakery so this may provide quick breakfast solutions for people on their way to work. She believes that half of her customers will purchase breakfast items. Anne asks 200 customers whether they would purchase breakfast items if they were available. Table 5 provides the customer responses of Yes, No, and Maybe.
Table 4: Total Daily Sales
$1,800
$975
$1,814
$1,421
$1,335
$1,273
$1,592
$1,305
$1,103
$1,105
$1,438
$1,219
$1,661
$1,692
$1,709
$1,584
$1,111
$1,613
$1,547
$1,715
$1,384
$1,595
$1,139
$2,017
$2,014
$1,497
$1,820
$1,770
$1,799
$1,386
$1,368
$1,506
$1,852
$1,642
$1,355
$1,199
$1,416
$1,716
$982
$1,851
$1,649
$1,864
$1,532
$1,318
$1,367
$1,939
$1,384
$1,867
$1,389
$1,152
egg sandwiches. There are many businesses in the downtown area near her bakery so this may provide quick breakfast solutions for people on their way to work. She believes that half of her customers will purchase breakfast items. Anne asks 200 customers whether they would purchase breakfast items if they were available. Table 5 provides the customer responses of Yes, No, and Maybe.
5) Run a hypothesis test on the population proportion of those that will definitely purchase breakfast items (Yes response). Use a hypothesized value of 0.50 and test at levels of significance of 0.01, 0.05, and 0.10. Use both the critical value and p-value approaches when testing at each level of significance.
6) Run a hypothesis test on what you believe is the true proportion of people who will definitely purchase breakfast items (Yes response). Test at levels of significance of 0.01, 0.05, and 0.10. Use the critical value and p-value approaches when testing at each level of significance.
Finally, Anne would like her report to include observations and recommendations based on the results of the confidence intervals and hypothesis tests for the population mean and population proportion.
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