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1. A fast food outlet claims that the mean waiting time in line is less than 3.8 minutes. A random sample of 60 customers has a mean of 3.7 minutes with a population standard deviation of 0.6 minute. If α = 0.01, test the fast food outlet's claim.

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Answer:

There is no significant evidence to conclude that the mean waiting time is less than 3.8 minutes

Step-by-step explanation:

H0 : μ = 3.8

H1 : μ < 3.8

Test statistic :

(x - μ) ÷ s/sqrt(n)

(3.7 - 3.8) ÷ 0.6/sqrt(60)

Test statistic = - 1.29

The Pvalue from test statistic :

P(z < -1.29) = 0.0985

Reject Null if

Pvalue < α

0.0986 > 0.01 ; Hence, we fail to reject the null ;

There is no significant evidence to conclude that the mean waiting time is less than 3.8 minutes

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