Question

A magazine claims that the mean amount spent by a customer at Burger Stop is greater than the mean amount spent by a customer at Fry World. The results for samples of customer transactions for the two fast food restaurants are shown below. At α= 0.10, can you support the magazine's claim? Assume the population variances are equal. Assume the samples are random and independent, and the populations are normally distributed.

Burger Stop: mean = $8.88, standard deviation = $0.82, sample size = 17

Fry World: mean = $8.25, standard deviation = $0.72, sample size = 8
Identify the claim and state H0 and Ha. Which is the correct claim below?
A. "The mean amount spent by a customer at Burger Stop is equal to the mean amount spent by a customer at Fry World."

B. "The mean amount spent by a customer at Burger Stop is greater than the mean amount spent by a customer at Fry World."

C. "The mean amount spent by a customer at Burger Stop is not equal to the mean amount spent by a customer at Fry World."

D. "The mean amount spent by a customer at Fry World is greater than the mean amount spent by a customer at Burger Stop."

Answer 1

Answer: Option "B" is correct.

Explanation:

Since we have given that

α= 0.10

Let the population variances are equal and samples are random and independent.

Let
`\bar{x}` be the mean amount spent by a customer at Burger Stop.

Let
`\mu` be the mean amount spent by customer at Fry World.

So, it has given that

the mean amount is spent by a customer at Burger stop is greater than the mean amount spent by a customer at Fry World.

So, Hypothesis would be :

`H_0:\bar{x}=\mu\\\\H_1:\bar{x}>\mu`

Hence, Option "B" is correct.