A City Is Considering Widening a Busy Intersection in Town

question 104

Essay

A city is considering widening a busy intersection in town.Last year,the city reported 16,000 cars passed through the intersection per day.The city conducted a survey for 49 days this year and found an average of 17,000 cars passed through the intersection,with a standard deviation of 5,000.
a.Specify the null and alternative hypotheses to determine whether the intersection has seen an increase in traffic.
b.Calculate the value of the test statistic and approximate the p-value.
c.The city is going to widen the intersection if it believes traffic has increased.At the 5% significance level,can you conclude that the intersection has seen an increase in traffic? Should the city widen the intersection?

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Definitions:

Commission Rate

The percentage of a sale amount that is paid to the individual or entity that facilitated the sale, often used in sales jobs and real estate transactions.

Traveller's Cheques

Preprinted, fixed-amount cheques designed to allow the person signing it to make an unconditional payment to someone else as a result of having paid the issuer for that privilege.

Exchange Rate

The equivalent value of a currency when exchanged for a different one.

Round-Trip Transaction

A term referring to the complete process of buying and then selling a financial instrument, or vice versa.