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.

---

Definitions:

Payables Deferral Period

The amount of time a company takes to pay off its suppliers after receiving goods or services, affecting its cash flow.

Daily Sales

The total revenue or amount of goods and services sold by a business within a single day.

Free Cash Flow

The amount of cash generated by a business after accounting for capital expenditures needed to maintain or expand the asset base.

EVA

Economic Value Added is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit.