Question

In: Statistics and Probability

Suppose you are the manager of Speedy Oil Change which claims that it will change the...

Suppose you are the manager of Speedy Oil Change which claims that it will change the oil in customers’ cars in less than 30 minutes on average. Further suppose that several complaints have been filed from customers stating that their oil change took longer than 30 minutes. Upper-level management at Speedy Oil Change headquarters has requested that you investigate the complaints. To begin your investigation, you randomly audit 36 oil changes performed by Speedy Oil Change and record the time each customer waited for the oil change. The number of minutes to complete each of the 36 oil changes is reported below.

42

23

19

11

10

27

41

27

22

26

24

32

27

25

25

35

31

22

23

31

17

37

33

25

28

24

28

21

40

16

33

30

14

23

22

10

In the questions below, you will test if the mean is significantly less than 30 minutes at a significance level of 0.05. (Please be sure to use correct notation and symbols in all answers.)

1. List the requirements that should be met for this hypothesis test.

2. Write the null and alternative hypothesis.

3. Calculate the test statistic and the P-value (to four decimal places). Label each accordingly.

   [Indicate which calculator program you use.]

4. Would you reject the null hypothesis? Justify your answer using a complete sentence and proper

   grammar.

5. Is the company fulfilling its promise to “change the oil in customers’ cars in less than 30 minutes on

   average?”

_________________________________________________________________________________

Unfortunately, Speedy Oil Change continues to get customer complaints. As the manager, you feel that perhaps more analysis is needed. You know that you are likely to be asked “how much less than 30 minutes is our mean oil change?”

6. Construct a 90% confidence interval (to the nearest tenth). [Indicate which calculator program

   you use.]

7. State the point estimate and calculate the margin of error (to the nearest tenth).

8. Explain to your superiors how to interpret this interval.

9. Using the confidence interval you created, calculate the interval of values that answers the

   question “how much less than 30 minutes is our mean oil change?”

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