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Hypothesis test interpretation.

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An entrepreneur is considering the purchase of a coin-operated laundry. The present owner claims that over the past 5 years, the average daily revenue was $675 with a standard deviation of $75. A sample of 30 days reveals a daily average revenue of $625. If you were to test the null hypothesis that the daily average revenue was $675 and decide not to reject the null hypothesis, what can you conclude?

There is not enough evidence to conclude that the daily average revenue was $675.
There is not enough evidence to conclude that the daily average revenue was not $675.
There is enough evidence to conclude that the daily average revenue was $675.
There is enough evidence to conclude that the daily average revenue was not $675.

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Solution Summary

This solution describes in detail the interpretation of a hypothesis test when the null hypothesis is not rejected.

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An entrepreneur is considering the purchase of a coin-operated laundry. The present owner claims that over the past 5 years, the average daily revenue was $675 with a standard deviation of $75. A sample of 30 days reveals a daily average revenue of $625. If you were to test the null hypothesis that the daily average revenue was $675 and decide not to reject the null hypothesis, what can you conclude?

There is not enough evidence to conclude that the daily average revenue was $675.
There is not enough evidence to conclude that the daily average revenue was not $675. ...

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