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. Let population 1 be Wells Fargo customers and population 2 be Bank of the West customers.

a) State the null and alternative hypotheses.

b) Find the value of the test statistic. You may use a graphing calculator. Round to three decimal places.

c) Find the P-value. You may use a graphing calculator. Round to three decimal places.

d) State whether you should reject or fail to reject the null hypothesis. Justify your answer.

e) State your conclusion in non-technical terms.

f) To construct a confidence interval for ?1 − ?2 that corresponds to this hypothesis test, what confidence level should you use? (90%, 95%, 99%, for example – a sketch may help)

g) Construct this confidence interval. You may use a graphing calculator. Round to three decimal places.

h) Explain why you reach the same conclusion with the confidence interval and the hypothesis test.

Solutions

Expert Solution

orchestra answered 1 year ago

Next > < Previous

Related Solutions

A local bank claims that the waiting time for its customers to be served is the...

A local bank claims that the waiting time for its customers to be served is the lowest in the area. A competitor bank checks the waiting times at both banks. The sample statistics are listed below. Test the local bank's claim. Use the information given below. Use the significant level of .05 and assume the variances are equal. sample size Local Bank n1 = 46 Competitor Bank n2 = 50 Average waiting time in minutes for each sample Xbar1 =...

Alex was a bank teller at Wells Fargo Bank. One of his long time customers is...

Alex was a bank teller at Wells Fargo Bank. One of his long time customers is Bill. Bill is the manger of Buffalo Wild Wings. Everyday is comes in noon to do a deposit, he leaves the deposit and Alex emails the receipt. This particular day Bill was in a hurry and missed indorsing two of the checks. Using IRAC, determine whether Alex can accept the deposit from Bill.

1)A local supermarket claims that the waiting time for its customers to be served is the...

1)A local supermarket claims that the waiting time for its customers to be served is the lowest in the area. A competitor's supermarket checks the waiting times at both supermarkets. The sample statistics are listed below. Test the local supermarket's hypothesis. Use a= 0.05. Local Supermarket Competitor Supermarket n1= 15 n2= 16 xbar 1= 5.3 minutes xbar 2= 5.6 minutes s1= 1.1 minutes s2= 1.0 minutes A) Hypothises: B) Critical Values t-critical C) Test statistic t-stat and the decision to...

A bank claims that the mean waiting time in line is less than 1.7 minutes. A...

A bank claims that the mean waiting time in line is less than 1.7 minutes. A random sample of 20 customers has a mean of 1.5 minutes with a standard deviation of 0.8 minute. Test the bank’s claim at 0.01 level of significance.

The table below shows the time in minutes that customers spent waiting in a bank....

The table below shows the time in minutes that customers spent waiting in a bank. Time (min.) Frequency 5 7 6-10 8 11-15 9 16-20 4 21-25 6 Calculate the mean, mode and median [4+4 + 4] (b) Calculate the variance. [5] (c) Calculate the standard deviation. [2] (d) Calculate the coefficient of skewness [3] (e) Calculate the coefficient of variation.

A.) The amount of time customers spend waiting in line at a bank is normally distributed,...

A.) The amount of time customers spend waiting in line at a bank is normally distributed, with a mean of 3.5 minutes and a standard deviation of 0.75 minute. Find the probability that the time a customer spends waiting is as follows. (Round your answers to three decimal places.) less than 4 minutes less than 2 minutes B.) The breaking point of a particular type of rope is normally distributed, with a mean of 310 pounds and a standard deviation...

Consider the balance sheets of two banks: Wells America and Bank of Fargo. Assume that the...

Consider the balance sheets of two banks: Wells America and Bank of Fargo. Assume that the legal reserve requirement is 10 percent of all deposits. A. Suppose that Wells America has $200 billion in checkable deposits, $30 billion in reserves, $60 billion in securities, and $150 billion in loans. Draw a balance sheet (T-account) for Wells America. What is the dollar value of its bank capital? How much does Wells America hold in excess reserves? How is this related to...

For the following three stocks Wells Fargo, Bank of America, and Citi. THe benchmark is DJUSFN...

For the following three stocks Wells Fargo, Bank of America, and Citi. THe benchmark is DJUSFN ( Dow Jones U.S. Financials Index) 1a. Calculate the holding period return for each stock from the viewpoint of an investor who purchased them at the closing price on Monday 3/16/20 and held them until the closing of the market on Wednesday 4/15/2020. If you need to review this calculation, refer to the Week 1 notes. If you had initially invested $10,000 in each...

Waiting times (in minutes) of customers at a bank where all customers enter a single waiting...

Waiting times (in minutes) of customers at a bank where all customers enter a single waiting line and a bank where customers wait in individual lines at three different teller windows are listed below. Find the coefficient of variation for each of the two sets of data, then compare the variation. Bank A (single line): 6.5 6.6 6.7 6.9 7.1 7.3 7.4 7.6 7.7 7.8 Bank B (individual lines): 4.4 5.4 5.7 6.2 6.7 7.7 7.8 8.4 9.4 9.9 The...

Waiting times (in minutes) of customers at a bank where all customers enter a single waiting...

Waiting times (in minutes) of customers at a bank where all customers enter a single waiting line and a bank where customers wait in individual lines at three different teller windows are listed below. Find the coefficient of variation for each of the two sets of data, then compare the variation. Bank A (single line): 6.6 nbsp 6.6 nbsp 6.7 nbsp 6.8 nbsp 7.0 nbsp 7.3 nbsp 7.5 nbsp 7.7 nbsp 7.7 nbsp 7.8 Bank B (individual lines): 4.4 nbsp...

Subjects