Question

In: Statistics and Probability

“Flora Lube” is a regional chain that provides a standard service for performing oil changes and...

“Flora Lube” is a regional chain that provides a standard service for performing oil changes and basic checkups on automobiles. The chain has a standard that says the average time per car for this service should be 12.5 minutes. There is considerable variability in times due to differences in layout of engines, degree of time pressure from other jobs, and many other sources. As a result, the management of the chain decided to study if the standard is being met and randomly selected 30 oil change and basic checkup services within a month and carefully recorded the time they took in minutes. The resulting data are reported in the following table.

11.2

8.1

16.5

18

10.4

12.1

13.2

8.2

13.3

35.1

24.1

12.1

7.5

12.3

15.2

8.8

15.0

9.3

9.0

10.1

14.1

17.3

13.7

12.8

12.8

19.8

22.2

8.3

28.3

11.7

Using the given data and at 3% level of significance, please test whether the chain is achieving its stated standard for the average time for oil change and basic checkup services. Show the necessary steps and explain your conclusion. Is your test result consistent with the conclusion you arrived at based on the 97% confidence interval you constructed under question (a) above? Please explain.        

Solutions

Expert Solution


Related Solutions

Fast Auto Service provides oil and lube service to cars. The time required to service a...
Fast Auto Service provides oil and lube service to cars. The time required to service a car is normally distributed. The mean amount of time to service a car is 30.0 minutes and a The standard deviation in the amount of time to service a car is 5.5 minutes. a. Determine the probability that a random car can be serviced in less than 20 minutes. b. If it takes longer than 45 minutes to service a car, the driver receives...
Quick OIL Change Shoppe is a regional chain of oil change service centers located in the...
Quick OIL Change Shoppe is a regional chain of oil change service centers located in the tri-state area. John Doe is the manager of their flagship location in Towson Junction. John is concerned about the number of complaints registered at his location. Complaints come in the form of “opportunities for improvement” listed by customers on the comment card they receive when their service is complete. In order to better understand the substance of the complaints, John has asked you to...
Jiffy Lube oil and Danterra Beauty/Spa Salon are both service provider organizations, do a "Comparison/Contrast" for...
Jiffy Lube oil and Danterra Beauty/Spa Salon are both service provider organizations, do a "Comparison/Contrast" for job order cost (i.eg, direct material, direct labor and overhead cost, etc.) Please be detailed.
Transit Airlines provides regional jet service in the Mid-South. The following is information on liabilities of...
Transit Airlines provides regional jet service in the Mid-South. The following is information on liabilities of Transit at December 31, 2018. Transit’s fiscal year ends on December 31. Its annual financial statements are issued in April. Transit has outstanding 5.5% bonds with a face amount of $73 million. The bonds mature on July 31, 2027. Bondholders have the option of calling (demanding payment on) the bonds on July 31, 2019, at a redemption price of $73 million. Market conditions are...
Transit Airlines provides regional jet service in the Mid-South. The following is information on liabilities of...
Transit Airlines provides regional jet service in the Mid-South. The following is information on liabilities of Transit at December 31, 2018. Transit’s fiscal year ends on December 31. Its annual financial statements are issued in April. Transit has outstanding 5.5% bonds with a face amount of $73 million. The bonds mature on July 31, 2027. Bondholders have the option of calling (demanding payment on) the bonds on July 31, 2019, at a redemption price of $73 million. Market conditions are...
Transit Airlines provides regional jet service in the Mid-South. The following is information on liabilities of...
Transit Airlines provides regional jet service in the Mid-South. The following is information on liabilities of Transit at December 31, 2018. Transit’s fiscal year ends on December 31. Its annual financial statements are issued in April. Transit has outstanding 6.4% bonds with a face amount of $85 million. The bonds mature on July 31, 2027. Bondholders have the option of calling (demanding payment on) the bonds on July 31, 2019, at a redemption price of $85 million. Market conditions are...
Transit Airlines provides regional jet service in the Mid-South. The following is information on liabilities of...
Transit Airlines provides regional jet service in the Mid-South. The following is information on liabilities of Transit at December 31, 2018. Transit’s fiscal year ends on December 31. Its annual financial statements are issued in April. 1. Transit has outstanding 7.6% bonds with a face amount of $79 million. The bonds mature on July 31, 2027. Bondholders have the option of calling (demanding payment on) the bonds on July 31, 2019, at a redemption price of $79 million. Market conditions...
MMV Inc., opened a chain of businesses several years ago that provide quick oil changes and...
MMV Inc., opened a chain of businesses several years ago that provide quick oil changes and other minor services in conjunction with a convenience operation consisting of a soup, sandwich, and snack bar. The strategy was that as customers brought autos in for oil changes, they would likely use the convenience operation to purchase a sandwich, bowl of soup, beverage, or some other snack while they were waiting for the work to be completed on their autos. The oil change...
Leisure Air, a regional airline, provides service for Pittsburgh, Newark, Charlotte, Myrtle Beach, and Orlando. Leisure...
Leisure Air, a regional airline, provides service for Pittsburgh, Newark, Charlotte, Myrtle Beach, and Orlando. Leisure Air has two Boeing 737-400 airplanes, one based in Pittsburgh and the other in Newark. Both airplanes have a coach section with a 132-seat capacity. Each morning the Pittsburgh-based plane flies to Orlando with a stopover in Charlotte, and the Newark-based plane flies to Myrtle Beach, also with a stopover in Charlotte. At the end of the day, both planes return to their home...
Problem 15-7 (Algorithmic) Speedy Oil provides a single-server automobile oil change and lubrication service. Customers provide...
Problem 15-7 (Algorithmic) Speedy Oil provides a single-server automobile oil change and lubrication service. Customers provide an arrival rate of 4.5 cars per hour. The service rate is 6 cars per hour. Assume that arrivals follow a Poisson probability distribution and that service times follow an exponential probability distribution. What is the average number of cars in the system? If required, round your answer to two decimal places L = What is the average time that a car waits for...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT