Assume That a Simple Random Sample Has Been Selected from a Normally

question 22

Essay

Assume that a simple random sample has been selected from a normally distributed population and test the given claim. Use either the traditional method or P-value method as indicated.
Identify the null and alternative hypotheses, test statistic, critical value(s)or P-value (or range
of P-values)as appropriate, and state the final conclusion that addresses the original claim. A
public bus company official claims that the mean waiting time for bus number 14 during peak
hours is less than 10 minutes. Karen took bus number 14 during peak hours on 18 different
occasions. Her mean waiting time was 7.6 minutes with a standard deviation of 2.3 minutes.
At the 0.01 significance level, test the claim that the mean waiting time is less than 10
minutes. Use the P-value method of testing hypotheses.

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Definitions:

Internal Rate of Return

The rate of discount at which the total net present value of a project or investment's cash inflows and outflows balances out to zero.

Conventional Cash Flows

Cash flow patterns characterized by an initial outflow (investment) followed by a series of positive cash inflows.

Analysis

This refers to the detailed examination and evaluation of data, facts, or financial figures to break down complex materials into smaller, understandable components, often for decision-making purposes.

Internal Rate of Return

A calculation used to estimate the profitability of potential investments, representing the discount rate at which the net present value of costs and benefits of a project are equal.