Question
In: Statistics and Probability
You are the manager of a restaurant that delivers pizza to college dormitory rooms. You have...
You are the manager of a restaurant that delivers pizza to college dormitory rooms. You have just changed your delivery process in an effort to reduce the mean time between the order and completion of delivery from the current 25 minutes. A sample of 36 orders using the new delivery process yields a sample mean of 22.4 minutes and a sample standard deviation of 6 minutes. Perform a hypothesis test to determine if there’s evidence that the population mean delivery time has been reduced below the previous population mean value of 25 minutes by answering the following questions:
(a) What are the null and alternate hypotheses for this test?
(b) What is the value of the test statistic for this test?
(c) Using the critical value approach, at the 0.05 level of significance, what is the decision rule?
(d) What is your conclusion in context of the problem? (Answer this question in a complete sentence(s) and include why, referring to the decision rule.)
(e) Using the p-value approach, at the 0.05 level of significance, what is the decision rule?
(f) What is your conclusion in context of the problem? (Answer this question in a complete sentence(s) and include why, referring to the decision rule.)
(g) Compare your conclusions in (a) and (b). Are they the same? Different? Should this always be the case?
Solutions
orchestra answered 1 year agoRelated Solutions
You are the manager of a restaurant that delivers pizza to college dormitory rooms. You have...
You are the manager of a restaurant that delivers pizza to
college dormitory rooms. You have just changed your delivery
process in an effort to reduce the mean time between the order and
completion of delivery from the current 25 minutes. A sample of 36
orders using the new delivery process yields a sample mean of 22.4
minutes and a sample standard deviation of 6 minutes. a. Using the
six-step critical value approach, at the 0.05 level of
significance, is...
You are the manager of a restaurant that delivers pizza to college dormitory rooms. You have...
You are the manager of a restaurant that delivers pizza to
college dormitory rooms. You have just changed your delivery
process in an effort to reduce the mean time between the order and
completion of delivery from the current 25 minutes. A sample of 36
orders using the new delivery process yields a sample mean of 22.4
minutes and a sample standard deviation of 6 minutes.
A) Using the six-step critical value approach, at the 0.05 level of
significance, is...
Assume you have just been hired as a business manager of PizzaPalace, a regional pizza restaurant...
Assume you have just been hired as a business manager of
PizzaPalace, a regional pizza restaurant chain. The company’s EBIT
was $120 million last year and is not expected to grow. PizzaPalace
is in the 25% state-plus-federal tax bracket, the risk-free rate is
6 percent, and the market risk premium is 6 percent. The firm is
currently financed with all equity, and it has 10 million shares
outstanding.
When you took your corporate finance course, your instructor stated
that most...
Assume you have just been hired as a business manager of PizzaPalace, a regional pizza restaurant...
Assume you have just been hired as a business manager of
PizzaPalace, a regional pizza restaurant chain. The company’s EBIT
was $50 million last year and is not expected to grow. The firm is
currently financed with all equity, and it has 10 million shares
outstanding. When you took your corporate finance course, your
instructor stated that most firms’ owners would be financially
better off if the firms used some debt. When you suggested this to
your new boss, he...
Assume you have just been hired as a business manager of PizzaPalace, a regional pizza restaurant...
Assume you have just been hired as a business manager of
PizzaPalace, a regional pizza restaurant chain. The company’s EBIT
was $50 million last year and is not expected to grow. The firm is
currently financed with all equity, and it has 10 million shares
outstanding. When you took your corporate finance course, your
instructor stated that most firms’ owners would be financially
better off if the firms used some debt. When you suggested this to
your new boss, he...
Assume you have just been hired as a business manager of PizzaPalace, a regional pizza restaurant...
Assume you have just been hired as a business manager of
PizzaPalace, a regional pizza restaurant chain. The company’s EBIT
was $50 million last year and is not expected to grow. The firm is
currently financed with all equity, and it has 10 million shares
outstanding. When you took your corporate finance course, your
instructor stated that most firms’ owners would be financially
better off if the firms used some debt. When you suggested this to
your new boss, he...
Assume you have just been hired as a business manager of PizzaPalace, a regional pizza restaurant...
Assume you have just been hired as a business manager of
PizzaPalace, a regional pizza restaurant chain. The company’s EBIT
was $50 million last year and is not expected to grow. The firm is
currently financed with all equity, and it has 10 million shares
outstanding. When you took your corporate finance course, your
instructor stated that most firms’ owners would be financially
better off if the firms used some debt. When you suggested this to
your new boss, he...
Assume you have just been hired as business manager of PizzaPalace, a pizza restaurant located adjacent...
Assume you have just been hired as business manager of
PizzaPalace, a pizza restaurant located adjacent to campus. The
company's EBIT was $500,000 last year, and since the university's
enrollment is capped, EBIT is expected to remain constant over
time. Since no expansion capital will be required, PizzaPalace
plans to pay out all earnings as dividends. The management group
owns about 50% of the stock, and the stock is traded in the OTC
market. The firm is currently financed with...
A manager of a pizza restaurant has changed the restaurant's delivery process in an effort to...
A manager of a pizza restaurant has changed the restaurant's
delivery process in an effort to reduce the mean time between the
order and completion of delivery from the current 25 minutes. A
sample of 36 orders using the new delivery process yields a sample
mean of 22.1 minutes and a sample standard deviation of 5 minutes.
Complete parts (a) through (d) below.
a. Using the critical value approach, at the 0.05 level of
significance, is there evidence that the...
A manager of a pizza restaurant has changed the restaurant's delivery process in an effort to...
A manager of a pizza restaurant has changed the restaurant's
delivery process in an effort to reduce the mean time between the
order and completion of delivery from the current 30 minutes. A
sample of 49 orders using the new delivery process yields a sample
mean of 27.7 minutes and a sample standard deviation of 6
minutes.
a.) Using the critical value approach, at the 0.05 level of
significance, is there evidence that the population mean delivery
time has been...
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