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Hypothesis Testing of Mean: Two sample z test

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.

Solution Summary

The solution provides step by step method for the calculation of testing of hypothesis. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.

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