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The average McDonald's restaurant generates $2.1 million in sales each year with a standard deviation of...

The average McDonald's restaurant generates $2.1 million in sales each year with a standard deviation of 1. Ian wants to know if the average sales generated by McDonald's restaurants in Rhode Island is different than the worldwide average. He conducts a hypothesis test by surveying 34 restaurants in Rhode Island. What distribution would he use to perform the test?

Possible Answers: 0.52 , 1 , 34, .17, 2.1

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Answer #1

Here overall sales of McDonald's restaurant is the population , having a mean of $2.1 million and a sd of 1 ( which should have a unit , you might have forgot to type) .

Ian wants to test if the mean sales of McDonald's oin Rhode island is different from others . So, it should be a mean test , with the population standard deviation as known .

So, He should use a one sample Z test .

[NOTE: If the population sd was unknows , he would have to use t test .]

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