The Result of a Hypothesis Is Described in Terms of the Probability

question 142

Essay

The result of a hypothesis is described in terms of the probability of obtaining a particular sample. Use the given contextto formulate the null and alternative hypotheses. Discuss whether the sample provides evidence for rejecting the nullhypothesis.
-A public bus company official claims that the mean waiting time for bus number 14 during
peak hours is only 10 minutes. Karen finds this hard to believe as she seems to be
invariably late for work. For 42 randomly selected days, her mean waiting time for bus 14
during peak hours was 11.3 minutes.
Assuming that the population mean waiting time is 10 minutes , the probability of
selecting a random sample with a mean waiting time of 11.3 minutes or more is 0.0026.

---

Definitions:

High-Low Method

An accounting method used to estimate the fixed and variable components of a cost based on the highest and lowest levels of activity.

Variable Maintenance Cost

Costs that change in proportion to the operational activity of a company, such as repairs and maintenance expenses that vary with usage.

Mixed Cost

A cost containing both variable and fixed cost elements, changing in total with activity level but not proportionately.

Direct Labor Hours

The total time workers spend producing a product or providing a service, directly tied to the production process.