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A Company Claims That the Standard Deviation in Their Delivery

question 30

Essay

A company claims that the standard deviation in their delivery time is less than 5 days. A sample of 27 past customers is taken. The average delivery time in the sample was 14 days with a standard deviation of 4.5 days. At 95% confidence, test the company's claim. Use the critical value approach.


Definitions:

Savings

The portion of an individual's or entity's income that is not spent on current expenditures and is instead reserved for future use or investment.

Disposable Income

Money available to families for savings and expenses after accounting for income taxes.

C+ I

An economic term representing total consumption (C) and investment (I) in an economy, key components of the gross domestic product (GDP).

Disposable Income

The amount of money that households or individuals have available for spending and saving after income taxes have been accounted for.

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