A Carpet Company Advertises That It Will Deliver Your Carpet $\alpha$

question 75

Essay

A carpet company advertises that it will deliver your carpet within 15 days of purchase. A sample of 49 past customers is taken. The average delivery time in the sample was 16.2 days. The standard deviation of the population ( $\alpha$ ) is known to be 5.6 days.
a.State the null and alternative hypotheses.
b.Using the critical value approach, test to determine if their advertisement is legitimate. Let $\alpha$ = .05.
c.Using the p-value approach, test the hypotheses at the 5% level of significance.

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Definitions:

Labor Supply Curve

A graphic representation showing the relationship between the wage rate and the quantity of labor that workers are willing to supply.

Marginal Cost

The extra cost incurred by producing one more unit of a product or service; important in determining the optimal production level.

Weekly Wage

The total of an individual's earnings before taxes and other deductions, received on a weekly basis for labor or services provided.

University

An institution of higher education and research, which awards academic degrees in various academic disciplines.