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Hypothesis Testing of Mean: Two sample z test

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7. A researcher is interested in comparing the response times of two different cab companies. Companies A and B are each called at 50 randomly selected times. The calls to the company A are made independently of the calls to company B. The response times for each call are recorded. The summary statistics are as follows

Company A Company B
Mean Response time 7.6 minutes 6.9 minutes
Standard Deviation 1.4 minutes 1.7 minutes
Sample size 50 50

Use a 0.02 significance level to test the claim that the mean response time for company A is the same as the mean response time for company B.

Show the steps of hypothesis testing listed below and support your decision with a p-value.

a) (3) State the hypotheses being tested.

Ho: Ha:

b) (2) State the requirements

c) (2) Give the computed value of the test statistic. ______________________

d) (2) What is the p-value of the test? ______________________

e) (4) State and explain the decision using the p-value method

f) (3) Based upon your decision, determine what type error you might be making and explain what this means.