Rox Fried Chicken is a widely known restaurant. Rox Fried Chicken has good taste and affordable price. The owner of Rox Fried Chicken admitted that the average price for a bowl of fried chicken is $25. a) Five students majoring in Information Systems want to test this hypothesis. They bought five bowls of fried chicken at a price of $21, $22.50, $19, $18 and $21.50. Create a dot plot for the five data points. In this diagram, please also depict the average price claimed. b) By looking at the dot plot diagram in question (a), decide whether or not you reject the Rox Fried Chicken owner's claim. Explain your decision. c) Management students who have taken the Business Statistics course believe they have a better quantitative way of testing a hypothesis than the graphical approach above. They use the t statistic to test the suitability of claims and facts. Calculate the t statistic for the sample data in problems (a), as well as the probability p value (p"-value" ). Decide whether you will reject the above claims or not. Compare your decision with the decisions you made earlier in (b).
Rox Fried Chicken is a widely known restaurant. Rox Fried Chicken has good taste and affordable price. The owner of Rox Fried Chicken admitted that the average price for a bowl of fried chicken is $25.
a) Five students majoring in Information Systems want to test this hypothesis. They bought five bowls of fried chicken at a price of $21, $22.50, $19, $18 and $21.50. Create a dot plot for the five data points. In this diagram, please also depict the average price claimed.
b) By looking at the dot plot diagram in question (a), decide whether or not you reject the Rox Fried Chicken owner's claim. Explain your decision.
c) Management students who have taken the Business Statistics course believe they have a better quantitative way of testing a hypothesis than the graphical approach above. They use the t statistic to test the suitability of claims and facts. Calculate the t statistic for the sample data in problems (a), as well as the probability p value (p"-value" ). Decide whether you will reject the above claims or not. Compare your decision with the decisions you made earlier in (b).
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