Question 4 Parts a-b (Attached Tables If Applicable)
- Attachment 1
- Attachment 2
- Attachment 3
4. (17 points] You have a food cart. Your daily revenue is normally distributed with a mean ofSEEN] and a standard deviation of $1013. a Suppose there is another location that might be worth switching to. a You plan to experiment with selling there for awhile, and then use a one-sided hypothesistest with or = .05 to determine whether you should switch. [a] [5 points] If you experiment with selling in the new location for at days, how high dom yoursample mean have to he to reject the null hypothesis that the new location will generate$BDdeay in revenue over the long—run. In other words, find the 1—“ that the sample mean,17’, must surpass to reject the HQ. Express your answer in terms of n, and assume that thenew location has the same standard deviation in daily revenue as the old location [$10G]. {h} [12 points] If the new location has normally distributed daily revenue with a true mean of 511:} and a standard deviation of III}, how many days would you have to try selling thereto have a power of 80% (Remember H“ is that the true mean is $503, and it is a onesided test with or = .05}.