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Big State University operates a large cafeteria located in the heart of campus.

ID: 3364410 • Letter: B

Question

Big State University operates a large cafeteria located in the heart of campus. The university's financial administration has initiated a study into the daily revenue generated by the cafeteria. It is widely accepted that the standard deviation of daily revenue is $3,000. The cafeteria's accountant has speculated that the average daily revenue is $60,000. As an analyst hired by Big State University, you have formulated the following hypothesis test: Ho: = $60,000 * $ 60,000 You use a sample of size 16. Suppose the data has been collected and the resulting test statistic is 1.97 Compute the P-value for the test. (Report answer to three decimal places. Answer must be within 0.001 of correct value.)

Explanation / Answer

Degree of freedom, df = n-1 = 16-1 = 15

t = 1.97

p-value = two tailed prbability: 0.068