A Supermarket Has Just Added a New Cash Register to Reduce

question 87

Essay

A supermarket has just added a new cash register to reduce the waiting times of the customers during weekends.Since a new cash register is added,the customers expect that their waiting time will be less than the waiting time before the cash register was added.Suppose the sample variance of the waiting times for 25 customers before adding the new cash register is = 4.8 minutes,while the sample variance of the waiting times for 25 customers after adding the cash register is = 2.2 minutes.The manager of the supermarket believes that the waiting times are normally distributed and that the two samples are drawn independently.
A)Develop the hypotheses to test whether the ratio of two population variances is less than 1.
B)Calculate the appropriate test statistic.
C)Using the p-value approach,determine the decision rule at the 5% significance level.
D)What is the conclusion? Given that all other criteria are satisfied,should the supermarket continue with the new cash register?

• A)Develop the hypotheses to test whether the ratio of two population variances is less than 1.
• B)Calculate the appropriate test statistic.
• C)Using the p-value approach,determine the decision rule at the 5% significance level.
• D)What is the conclusion? Given that all other criteria are satisfied,should the supermarket continue with the new cash register?

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Definitions:

Corporate Bylaws

Formal rules and regulations adopted by a corporation to govern its operations and management.

Indenture Contract

A formal agreement between a bond issuer and the bondholders, specifying the terms of the bond such as the interest rate, maturity date, and other obligations.

Articles of Incorporation

A document filed with a state or governmental body to legally document the creation of a corporation.

Provincial Tax Agreement

An accord between provinces or between the federal and provincial governments regarding the collection and distribution of taxes.