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Irina-Kira
13 days ago
5

Company A is trying to sell its website to Company B. As part of the sale, Company A claims that the average user of their site

stays on the site for 10 minutes. Company B is concerned that the mean time is significantly less than 10 minutes. Company B collects the times (in minutes) below for a sample of 19 users. Assume normality.
Time: 1.2, 2.8, 1.5, 19.3, 2.4, 0.7, 2.2, 0.7, 18.8, 6.1, 6, 1.7, 29.1, 2.6, 0.2, 10.2, 5.1, 0.9, 8.2
Conduct the appropriate hypothesis test for Company B using a 0.08 level of significance.
a) What is the critical value for the test? Give your answer to four decimals.
b) What is the appropriate conclusion?
A. Reject the claim that the mean time is 10 minutes because the test statistic is larger than the critical point.
B. Fail to reject the claim that the mean time is 10 minutes because the test statistic is larger than the critical point.
C. Reject the claim that the mean time is 10 minutes because the test statistic is smaller than the critical point.
D. Fail to reject the claim that the mean time is 10 minutes because the test statistic is smaller than the critical point.
Mathematics
1 answer:
zzz [12.3K]13 days ago
4 0

Response:

a) Critical value = -1.4052

Since we are verifying whether the mean time is under 10 minutes, the critical region is defined by

z < -1.4052

b) Option C is accurate.

Dispute the assertion that the average time is 10 minutes due to the test statistic being lower than the critical threshold.

Thus, it indicates the mean time is significantly under 10 minutes.

Step-by-step breakdown:

a) Using z-distribution, the critical value is derived based on the confidence level of the conducted test. Since the hypothesis test is one-sided (determining if the average time is significantly less than 10 minutes)

P(z < Critical value) = 0.08

Based on z-tables, critical value is -1.4052

Given the direction of interest regarding mean time being less than 10 minutes, the critical region is

z < -1.4052

b) Initially, we establish the null and alternative hypotheses

The null hypothesis implies insufficient evidence to claim that the mean time is below 10 minutes.

Conversely, the alternative hypothesis posits that there is substantial evidence indicating the mean time is under 10 minutes.

To perform this hypothesis assessment now, we need to calculate the test statistic

Test statistic = (x - μ)/σₓ

x = mean sample = (Σx/N)

The observed data is

1.2, 2.8, 1.5, 19.3, 2.4, 0.7, 2.2, 0.7, 18.8, 6.1, 6, 1.7, 29.1, 2.6, 0.2, 10.2, 5.1, 0.9, 8.2

Σx = 119.7

N = Size of sample = 19

x = sample mean = (119.7/19) = 6.3

μ = standard for comparison = 10 minutes

σₓ = standard error = (σ/√N)

where N = Size of sample = 19

σ = √[Σ(x - xbar)²/N]

x = each data point

xbar = mean = 6.3

N = Sample size = 19

Σ(x - xbar)² = 1122.74

σ = (√1122.74/19) = 7.687

σₓ = (7.687/√19) = 1.7635

Test statistic = (x - μ)/σₓ

Test statistic = (6.3 - 10)/1.7635

= -2.098 = -2.10

z = -2.10 falls within the rejection area (z < -1.4052), hence, we reject the null hypothesis in favor of the claim, asserting the mean time is significantly below 10 minutes.

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