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Hypothesis Testing in Excel for High Occupancy Lanes

Many cities have adopted HOV High Occupancy Lanes to speed up commuter traffic to downtown business districts. Planning for Metro Transportation District has depended on a well-established average of 3.4 passengers per HOV. But a summer intern notes that because many firms are sponsoring van pools, the average number of passengers per car is probably higher. The intern takes a sample of 23 vehicles going through the HOV lane of a toll plaza and reports a sample mean of 4.3 passengers, and a standard deviation of 1.5 passengers.

At the 0.01 level of significance, does the sample suggest that the mean number of passengers has increased?

Please provide explanation and formulas in Excel.

Solution Summary

This solution provides answers in Excel for hypothesis testing.