Question

A sample of restaurants in a city shows that the average cost of an appetizer is $6.32 with a standard deviation of $0.47. A brand new restaurant wants to get noticed by offering appetizers for a much lower price. To determine the lower price, should the formula use a z-value that is greater than or less than -1?

I couldn't figure out how to answer a specific question on the site, but the answer is "Less than -1" because they are looking for a price that is lower then the average, or mean price. It should be -1 standard deviation or lower.
Hope this helps someone

Answer 1

To determine the lower price, the formula should use a z-value that is less than -1.

How to utilize the z-value?

We are given;

Mean; x' = $6.32

Standard deviation; s = $0.47

A positive z-score indicates the raw score is higher than the mean average while a negative z-score indicates the raw score is below the mean average.

Now, we want to find out the lower price from the definition above, we have to use a negative z-score which in this case will be -1.

Read more about Z-value at; https://brainly.com/question/25638875

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