Use the Sign Test to Test the Indicated Claim

question 13

Essay

Use the sign test to test the indicated claim. The waiting times (in minutes)of 28 randomly selected customers in a bank are given below. Use a significance level of 0.05 to test the claim that the population median is equal to 5.3 minutes. $\begin{array} { r r r r r r r } 8.2 & 8.0 & 10.5 & 3.8 & 6.4 & 5.3 & 7.8 \\2.9 & 6.0 & 7.7 & 6.1 & 5.9 & 1.2 & 10.4 \\7.3 & 6.9 & 5.8 & 5.1 & 6.2 & 3.1 & 5.8 \\11.7 & 4.5 & 6.5 & 9.8 & 7.4 & 2.3 & 7.8\end{array}$

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Definitions:

Line Of Credit

A flexible loan from a bank or financial institution that allows a borrower to draw down, repay, and reborrow funds up to a specified credit limit.

Leverage

The use of borrowed funds to increase one's investment capacity and potentially enhance the rate of return, also referring to influencing factors or the ability to influence outcomes.

Borrowing Money

The act of obtaining funds from lenders under the agreement to repay with interest within a specified timeframe.

Increases Equity

An action or event that raises the value of an owner's shares in a company or property.