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    Test Bus Companies Claim

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    A bus company claims that the mean waiting time for a bus during rush hour in less than 7 minutes. A random sample of 20 waiting times has a mean of 5.2 minutes with a standard deviation of 2.1 minutes. At a= 0.01, test the bus companies claim. Assume the distribution is normally distributed. Include curve. Write conclusion where a layman can understand.

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    Solution Preview

    Denote by mu the mean waiting time for a bus during rush hour. Then we would like to test

    H0: mu=7
    Ha: mu<7.

    Now we use z-test. As the ...

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