Statistics: Hypothesis Testing – #414


Question: The following problem is taken with permission of the Executive Editor of Statistics at Addison-Wesley Publishers. The textbook is Business Statistics by Mario Triola and LeRoy Franklin, 2005.

An investor considering two possible locations for a new restaurant commissions a study of the pedestrian traffic at both sites. At each location, the pedestrians are observed in one-hour units and, for each hour, an index of desirable characteristics is compiled (see the sample results below).

EAST WEST

n = 35 n = 50

x-bar = 421 x-bar = 347

s = 122 s = 85

[#10. cont’d] Test the claim that the East site has a higher mean for pedestrian traffic than the West site. Include the P-value. Use a 0.05 significance level. Show a complete hypothesis test: H0, H1, CV, TS, Decision on H0, and Conclusion on claim.

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