A local bank claims that the waiting time for its customers to be served is the lowest in the area. A competitor bank checks the waiting times at both banks. The sample statistics are listed below. Test the local bank's claim. Use the information given below. Use a significance level of .05 and assume the variances are equal. Sample statistics for a local bank and a competitor's bank Local Bank Competitor Bank Sample size nj = = 46 n2 = 50 Average waiting time in minutes for each sample X = 2.3 mins. X2 = 2.6 Sample Standard Deviation of each Sample S1 = 1.1 mins 1.0 mins. S2 %3D 1. Are the samples dependent or independent? 2. State your Null/Alternative hypotheses 3. What is the test-statistic? 4. What is the p-value? 5. What are the critical values? 6. Does the test-statistic lie in the rejection region? 7. Interpret the Result? nge for a different yalue of alpha? Explain?

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A local bank claims that the waiting time for its customers to be served is the lowest in the area. A
competitor bank checks the waiting times at both banks. The sample statistics are listed below. Test the
local bank's claim. Use the information given below. Use a significance level of .05 and assume the
variances are equal.
Sample statistics for a local bank and a competitor's bank
Local Bank
Competitor Bank
Sample size
n1 = 46
n2 = 50
Average waiting time in minutes for each
sample
X, = 2.3 mins.
X2 = 2.6
Sample Standard Deviation of each
Sample
= 1.1 mins
1.0 mins.
S1
S2
1. Are the samples dependent or independent?
2. State your Null/Alternative hypotheses
3. What is the test-statistic?
4. What is the p-value?
5. What are the critical values?
6. Does the test-statistic lie in the rejection region?
7. Interpret the Result?
Does the result change for a different value of alpha? Explain?
Transcribed Image Text:A local bank claims that the waiting time for its customers to be served is the lowest in the area. A competitor bank checks the waiting times at both banks. The sample statistics are listed below. Test the local bank's claim. Use the information given below. Use a significance level of .05 and assume the variances are equal. Sample statistics for a local bank and a competitor's bank Local Bank Competitor Bank Sample size n1 = 46 n2 = 50 Average waiting time in minutes for each sample X, = 2.3 mins. X2 = 2.6 Sample Standard Deviation of each Sample = 1.1 mins 1.0 mins. S1 S2 1. Are the samples dependent or independent? 2. State your Null/Alternative hypotheses 3. What is the test-statistic? 4. What is the p-value? 5. What are the critical values? 6. Does the test-statistic lie in the rejection region? 7. Interpret the Result? Does the result change for a different value of alpha? Explain?
Expert Solution
Step 1

1.

Denote μ1, μ2 as the true average waiting time for all customers of local bank and competitor bank, respectively.

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