Testing Hypotheses: One Sample Tests

Maxwell’s Hot Chocolate is concerned about the effect of the recent year-long coffee adver- tising campaign on hot chocolate sales. The average weekly hot chocolate sales two years ago was 984.7 pounds and the standard deviation was 72.6 pounds. Maxwell’s has randomly selected 30 weeks from the past year and found average sales of 912.1 pounds. (a) State appropriate hypotheses for testing whether hot chocolate sales have decreased. (b) At the 2 percent signifi cance level, test these hypotheses.

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