A Large University Is Interested in Learning About the Average $\mu = 20$

question 102

Multiple Choice

A large university is interested in learning about the average time it takes students to drive to campus. The university sampled 238 students and asked each to provide the amount of time they spent traveling to campus. This variable, travel time, was then used to create a confidence interval and to conduct a test of hypothesis, both of which are shown in the printout below.

One-Sample Z Test

Null Hypothesis: $\mu = 20$
Alternative Hyp: $\mu > 20$



Cases Included 238

What conclusion can be made from the test of hypothesis conducted in this printout? Begin each answer with, "When testing at $\alpha = 0.01 \ldots$ ...

• A) ...there is insufficient evidence to indicate that the average travel time of all students is equal to 20 minutes.
• B) ...there is sufficient evidence to indicate that the average travel time of all students is equal to 20 minutes.
• C) ...there is insufficient evidence to indicate that the average travel time of all students exceeds 20 minutes.
• D) ...there is sufficient evidence to indicate that the average travel time of all students exceeds 20 minutes.

---

Definitions:

American Depository Receipts

Certificates issued by U.S. banks representing a specified number of shares in a foreign company's stock, traded on U.S. financial markets.

S&P 500 Portfolio

A portfolio of investments that aims to mimic the performance of the S&P 500, a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.

Market Portfolio

A theoretical portfolio of all investable assets, weighted by market capitalization, that represents the entire market.

World Equities

Shares in companies located around the globe, representing ownership across different countries and industries.