In: Statistics and Probability
Question: How Much do Uber drivers make per hour?
On its blog, Uber posted a scatterplot of several thousand drivers in New York City. The scatterplot shows each's driver's average earnings per hour and the number of hours worked. A simple random sample of 27 drivers who worked 40 hours a week yielded a mean of $36.16 per hour and a standard deviation of $6.58 per hour. The original data set is in Uber Drivers.xlsxPreview the document.
We will do a hypothesis test to determine if the mean rate for
Uber drivers in NYC is greater than $35.00 per hour. Use LaTeX:
\alpha\:=\:0.05
α +0.05
a. Write the null and alternative hypotheses for the test.
b.In terms of the problem, describe what a Type I error would be. What is the probability of making a Type I error in this case?
c. Write two sentences checking the assumptions, one sentence for
each assumption.
d. What are the degrees of freedom for the t-distribution?
e. What is the t-critical value for this test? Your answer should be rounded to three decimal places.
f.Write the decision rule for the test.
The decision rule should be of the form: If t-calc is .................. then................
g.Calculate the value of t-calc. Round your answer to three decimal
places.
h. Do you reject Ho or fail to reject Ho?
Group of answer choices
Fail to Reject Ho
Reject Ho
i. Write a conclusion that a layperson could understand. Please use a complete sentence.
j. Why did we use a t-distribution instead of the normal z-distribution?