Faced with rising fax costs, a firm issued a guideline that transmissions of 10

Question

Faced with rising fax costs, a firm issued a guideline that transmissions of
10 pages or more should be sent by 2-day mail instead. Exceptions are
allowed, but they want the average to be 10 or below. The firm examined
35 randomly chosen fax transmissions during the next year, yielding a
sample mean of 14.44 with a standard deviation of 4.45 pages.

a) At the .01 level of significance, is the true mean greater than
10?
b) Use Excel to find the right-tail p-value

Answer A) At the .01 level of significance, is the true mean greater than 10?
Please Show all five step
Answer B) Use Excel to find the right-tail p-value

Explanation / Answer

Given mean=14.44 , s=4.45
n=35

The test hypothesis is
Ho:<=10
Ha:>10

The test statistic is

Z=(xbar-)/(s/n)

=(14.44-10)/(4.45/sqrt(35))

=5.9

The p-value is P(Z>5.90)=0 (check standard normal table)

Since the p-value is less than 0.01, we reject Ho.

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