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-1) Find the test statistic. (Round your answer to 4 decimal places.) The test statistic (a-2) At the.01 level of significance, is the true mean greater than 10? No Yes (b) Use Excel to find the right-tail p-value. p-value

Explanation / Answer

N = 35

Mean = 14.44

Stdev = 4.45

A1. Test statistic = (14.44-. 10)/ (4.45/sqft(35))

= 5.9028

Now critical Z value is 2.575

Since the test statistic of 5.9028 is more than critical value of 2.575 we rejectnull hypothesis and conclude that it is 10 or more

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