A restaurant chain has two locations in a medium-sized town and, believing that it has oversaturated the market for its food, is considering closing...

At the 5% significance level, does the evidence support the manager's claim?

Step 1: Hypothesis

a. Ho: µ1- µ2< 0 Ha: µ1- µ2≥ 0

b. Ho: µ1- µ2= 0  Ha: µ1- µ2≠ 0

c.  Ho: µ1- µ2≤ 0  Ha: µ1- µ2> 0

d. Ho: µ1 ≥ µ2 Ha: µ1 < µ2

 Step 2: Compute the critical value:

a. 1.645

b. 1.96

c. 1.676

d. 2.011

Step 3: Compute the appropriate test statistic:

a. -1.59

b. 2.011

c. 15.92

d. 1.676

Step 4: What is the conclusion at the 5% significance level?

a. Reject Ho, the manager's claim is true.

b. Reject Ho, cannot conclude the manager's claim is true.

c. Do not reject Ho, the manager's claim is true.

d. Do not reject Ho, cannot conclude the manager's claim is true.