(Round all intermediate calculations to at least 4 decimal places.) A city counc

ID: 3360533 • Letter: #

Question

(Round all intermediate calculations to at least 4 decimal places.) A city council is deciding whether or not to spend additional money to reduce the amount of traffic. The council decides that it will increase the transportation budget if the amount of waiting time for drivers exceeds 20 minutes. A sample of 32 main roads results in a mean waiting time of 22.08 minutes with a standard deviation of 5.42 minutes. Conduct a hypothesis test at a 1% level of significance to determine whether or not the city should increase its transportation budget. Use Table 2 a. Select the relevant null and the alternative hypotheses. Ho: s 20; HA: > 20 b. Compute the value of the appropriate test statistic. (Round your answer to 2 decimal places.) Test statistic c-1. Calculate the critical value at a 1% level of significance. (Round your answer to 3 decimal places.) Critical value c-2. Determine whether or not the city should increase its transportation budget. Reject Ho; the city should increase its transportation budget Do not reject Ho: the city should increase its transportation budget Reject Ho: the city should not increase its transportation budget. Do not reject Ho; the city should not increase its transportation budget.

Explanation / Answer

Solution:-

a) H0: 20 against HA: > 20

b) mean = 22.08, sd = 5.42

t = (22.08 - 20)/(5.42/srqt(32))

t = 2.17

p - value = 0.019

c-1)df =n-1 = 32 -1 = 31

level of significance = 0.01

critical value = 2.453

c -2) option B. DO not reject H0 ; the city should increase its transportation budget.