Pizza Hut, after test-marketing a new product called the Bigfoot Pizza, concluded that introduction of the Bigfoot
Question:
Pizza Hut, after test-marketing a new product called the Bigfoot Pizza, concluded that introduction of the Bigfoot nationwide would increase its sales by more than 14% (USA Today, April 2, 1993). This conclusion was based on recording sales information for a random sample of Pizza Hut restaurants selected for the marketing trial. With μ denoting the mean percentage increase in sales for all Pizza Hut restaurants, consider using the sample data to decide between H0: μ = 14 and Ha: μ > 14.
a. Is Pizza Hut’s conclusion consistent with a decision to reject H0 or to fail to reject H0?
b. If Pizza Hut is incorrect in its conclusion, is the company making a Type I or a Type II error?
Step by Step Answer:
To determine whether Pizza Huts conclusion is consistent with a decision to reject H0 null hypothesi...View the full answer
Introduction To Statistics And Data Analysis
ISBN: 9780495118732
3rd Edition
Authors: Roxy Peck, Chris Olsen, Jay L. Devore
