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In: Statistics and Probability

Question: How Much do Uber drivers make per hour? On its blog, Uber posted a scatterplot...

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?

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