Research by First Bank of Illinois revealed that 8 percent of its customers wait more than...

Research by First Bank of Illinois revealed that 8 percent of its customers wait more than five minutes to do their banking when not using the drive-through facility. Management considers this reasonable and will not add more tellers unless the proportion becomes larger than 8 percent. The branch manager at the Litchfield Branch believes that the wait is longer than the standard at her branch and requested additional part-time tellers. To support her request she found that, in a sample of 180 customers, 17 waited more than five minutes.

(a)

State the null hypothesis and the alternate hypothesis. (Round your answers to 2 decimal places.)


H₀: π ≤
H₁: π >

(b)

State the decision rule for .01 significance level. (Round your answer to 2 decimal places.)

Reject H₀ if z>

(c)

Compute the value of the test statistic. (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places.)

Value of the test statistic

(d)

Is it reasonable to conclude that more than 8 percent of the customers wait more than five minutes? Use the .01 significance level.

(Click to select)RejectDo not reject H₀. It is (Click to select)reasonablenot reasonable to conclude that more than 8 percent of the customers wait more than five minutes.

Solutions

Expert Solution

(a)

(b)

Reject Ho if Z > 2.33

(c)

Test statistic = 0.714

(d)

Do not reject Ho. It is not reasonable to conclude that more than 8 percent of the customers wait more than five minutes.

orchestra answered 1 year ago

Next > < Previous

Related Solutions

A service station advertises that customers will have to wait no more than 30 miniutes for...

A service station advertises that customers will have to wait no more than 30 miniutes for an oil change. A sample of 25 oil changes has a standard deviation of 5.2 minutes. a) Find the 95% confidence interval of the population variance of the time spent waiting for oil change. b) Find the 95% confidence interval of the population standard deviation of the time spent waiting for oil change.

Hey service station advertises that customers will have to wait no more than 30 minutes for...

Hey service station advertises that customers will have to wait no more than 30 minutes for an oriole change a sample of 28 oil change has a standard deviation of five. Two minutes find the 95% confidence interval of the population variance and standard deviation of the time spent waiting for an oil change

First City Bank pays 8 percent simple interest on its savings account balances

First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a $61,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Difference in accounts =

PLS NO MORE THAN 150 WORDS A bank manager notices that by the time customers get...

PLS NO MORE THAN 150 WORDS A bank manager notices that by the time customers get to the teller, they seem irritated and impatient. She wants to investigate the problem further, so she hires you to design a research project to figure out what is bothering the customers. The bank wants three studies? (a) several focus groups of their customers, (b) observation using a hidden camera, and (c) an online survey of 500 customers. Identify which studies are qualitative, and...

The amount of time customers wait in line during hour at the bank follows a normal...

The amount of time customers wait in line during hour at the bank follows a normal distribution with a mean of 8.5 minutes and standard deviation of 2.2 minutes. During Peak hours at the bank, what is the probablity a randomly selected person will wait: a. at least 12 minutes? b.no more than 6 minutes? c.between 7 and 10 minutes? d. How many minutes should the bank advertise for service so that no more than 4% of its customers will...

Wells Fargo claims that the waiting time for its customers is the lower than at Bank...

Wells Fargo claims that the waiting time for its customers is the lower than at Bank of the West. You draw random samples of 30 customers at each bank. At Wells Fargo, the mean waiting time is found to be 5.3 minutes, with a standard deviation of 1.1 minutes. At Bank of the West, the mean waiting time is found to be 5.6 minutes with a standard deviation of 1.2 minutes. Test Wells Fargo’s claim at a 0.05 significance level....

Someone gets more than 8 hours of sleep 50 percent of the time, less than 3...

Someone gets more than 8 hours of sleep 50 percent of the time, less than 3 hours 30 percent of the time, and 3-8 hours (inclusive) 20 percent of the time. when they sleep more than 8 hours, forty percent of the time they score really well. when they get less than 3 hours, 20 percent of the time they score really well. when they get 3-8 hours inclusive they score really well 40 percent of the time. what is...

A restaurant is about to close, but it must wait until all 8 remaining customers have...

A restaurant is about to close, but it must wait until all 8 remaining customers have left. Starting now, each customer’s remaining time in the restaurant is exponentially distributed with mean fifteen minutes. If the customers leave independently of one another, find the probability that (a) after 2 hours the restaurant is still open; (b) after 1 hour, the restaurant is still waiting on exactly 2 customers.

A bank manager wants to learn more about the time a customer has to wait to...

A bank manager wants to learn more about the time a customer has to wait to be served. He measures waiting time for a sample of 7 randomly selected customers and finds the following values (in seconds): 43, 39, 40, 75, 34, 86, 125. Find a point estimate of the population standard deviation of the wait time. If required, round your answer to two decimal places.

A drugstore considers a wait of more than 5 minutes to be a defect. Each week...

A drugstore considers a wait of more than 5 minutes to be a defect. Each week 100 customers are randomly selected and timed at the checkout line. The numbers of defects for 20 consecutive weeks are given below. 4 4 5 5 5 5 5 6 6 6 6 12 6 6 6 7 6 7 8 7 Find the correct lower control limit

Subjects