In Order to Fairly Set Flat Rates for Auto Mechanics

question 73

Multiple Choice

In order to fairly set flat rates for auto mechanics, a shop foreman needs to estimate the average time it takes to replace a fuel pump in a car. How large a sample must he select if he wants to be 99% confident that the true
Average time is within 15 minutes of the sample average? Assume the standard deviation of all times is 30
Minutes.

• A)27
• B)26
• C)6
• D)5

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Definitions:

P-value

The likelihood of seeing a test statistic as extreme or more extreme than the one measured, assuming the null hypothesis holds.

Bootstrap Distribution

A data-driven simulation method for estimating the sampling distribution of an estimator by resampling with replacement from the original data.

Small Sample

A subset of a population used in statistical analysis that is considered to be too small to reliably indicate properties of the population.

Permutation Test

A type of non-parametric statistical significance test that involves rearranging the observations among the groups and calculating the difference in outcomes under various permutations.