Conduct an appropriate hypothesis test to determine if the mean „Daily Revenue per Square Foot? has improved with the productivity drive. You should include the followings: (a) State the null and...

Conduct an appropriate hypothesis test to determine if the mean „Daily Revenue per Square Foot? has improved with the productivity drive. You should include the followings: (a) State the null and alternative hypotheses and explain how you develop these two hypotheses. (b) Perform an appropriate hypothesis test with a=0.05 using the critical value approach


Productivity Drive TL Restaurant Ltd is a public listed company which manages over 20 restaurants in Singapore. Each outlet bears the hallmark values of superior quality food, excellent service and unique interior design. The company has won numerous accolades from the F&B industry, including the coveted Awards of Excellence presented during Asia‟s premier annual gastronomic event – the World Gourmet Summit and the Singapore Gourmet Hunt, a coveted annual culinary competition. Mr Peter Lim is the Chief Executive Officer of TL Restaurant Ltd and has been with the company for more than 10 years. In line with the government‟s drive to improve productivity, Mr Lim launched a strategic project in 2010 to ramp up the productivity of all its restaurants. The productivity indicator used by the company is „Daily Revenue per Square Foot‟. This is obtained by dividing daily revenue by the restaurant total floor area. Attached is an excel file (“Restaurant_Data.xls”) containing the „Daily Revenue per Square Foot‟ (DRSF, measured in $ per square foot) randomly selected from various restaurants on randomly selected days for year 2009 (before productivity drive) and year 2010 (during productivity drive). Your group has been nominated to provide consultancy services to TL Restaurant Ltd on this matter by analyzing the data in SPSS and to provide recommended solutions to the below questions. Question 1 Conduct an appropriate hypothesis test to determine if the mean „Daily Revenue per Square Foot‟ has improved with the productivity drive. You should include the followings: (a) State the null and alternative hypotheses and explain how you develop these two hypotheses. (b) Perform an appropriate hypothesis test with α=0.05 using the critical value approach. Question 2 What are the assumptions made in performing the hypothesis test in Question 1? Are these assumptions reasonable for this case? Please provide explanation to substantiate your view. 2009 DRSF in 2009 5250 3630 5250 4890 4060 4620 4890 4650 5130 3710 4170 3710 5610 5370 3340 4650 5010 4280 4420 4650 4290 3820 4050 4410 4290 4530 5730 2010 DRSF in 2010 5130 4290 5490 5610 6330 7280 5850 7410 6330 5370 6810 6090 5610 6440 6920 5610 6320 6090 6320 6680 5610 4880 5370 6320 8010 7640