A national grocer's magazine reports the typical shopper spends 10 minutes in line waiting to check out. A sample of 20 shoppers at the local Farmer Jack's showed a mean of 9.6 minutes with a standard deviation of 3.7 minutes. Is the waiting time at the local Farmer Jack's less than that reported in the national magazine? Use the 0.025 significance level. a. What is the decision rule? (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places.) Reject HO: u 2 10 and fail to reject H1: u < 10 when the test statistic is b. Compute the value of the test statistic. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.) Value of the test statistic c. What is your decision regarding Hg?
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
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