Fast 'N Clean Operates 12 Laundromats on the East Side $\alpha$

question 24

Essay

Fast 'n Clean operates 12 laundromats on the east side of the city. All of Fast 'n Clean's clothes dryers have a label stating "20 minutes for $1.00." You question the accuracy of the dryers' clocks and decide to conduct an observational study. You randomly select 36 dryers in several different Fast 'n Clean locations, put $1.00 in each and time the drying cycle. The sample mean drying time is 20 minutes and 25 seconds. The manufacturer of the dryer states that the standard deviation for 20-minute drying cycles is 1 minute.
a. Using the sample data and $\alpha$ = .05, test the validity of the label on the dryers. Apply the p-value and critical value approaches to conducting the two-tail hypothesis test.
b. Conduct the same two-tail hypothesis test, but this time use the confidence interval approach to hypothesis testing.

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Definitions:

Consideration

The value (such as money, service, or goods) that is exchanged between parties in a contract, making the agreement legally binding.

Value

The importance, worth, or usefulness of something, often in terms of money, social benefits, or personal significance.

Shelter Principle

A legal rule in negotiable instruments law that allows a person who obtains a negotiable instrument under certain conditions to acquire greater rights than the transferor had.

Holder-In-Due-Course Status

is a legal status that protects a purchaser of debt when they acquire it for value, in good faith, and without notice of certain adverse claims or potential defenses.