Executives of a supermarket chain are interested in the amount of time that customers spend in the stores during shopping trips. The mean shopping time, µ, spent by customers at the supermarkets has been reported to be 38 minutes, but executives have good reason to believe that u is different from 38 minutes. The executives hire a statistical consultant and ask her to perform a statistical test. To perform her statistical test, the consultant collects a random sample of shopping times at the supermarkets. She computes the mean of these times to be 44 minutes and the standard deviation of the times to be 10 minutes. Based on this information, complete the parts below.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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**Educational Website Text: Hypothesis Testing Example**

**Scenario:**

Executives of a supermarket chain aim to understand the average time customers spend shopping during their visits. The average time, represented as μ, has been previously reported as 38 minutes. However, executives suspect that this might not be accurate and opt for a statistical test to verify their hypothesis. A statistical consultant is hired for this purpose.

**Data Collection:**

The consultant takes a random sample of shopping times. The sample shows a mean time of 44 minutes, with a standard deviation of 10 minutes.

**Tasks:**

Based on this information, address the following:

**(a) Hypothesis Formulation:**

- Null Hypothesis (H₀): μ = 38 (The mean shopping time is 38 minutes)
- Alternative Hypothesis (H₁): μ ≠ 38 (The mean shopping time is different from 38 minutes)

**(b) Decision Making and Errors:**

- If the consultant decides not to reject the null hypothesis, she might be making a **Type II error**. This occurs when the null hypothesis is not rejected, although it is false.

**(c) Type I Error Description:**

- A Type I error involves **rejecting** the hypothesis that μ is **38 minutes** when, in fact, μ is **38 minutes**. This error happens when a true null hypothesis is incorrectly rejected.
Transcribed Image Text:**Educational Website Text: Hypothesis Testing Example** **Scenario:** Executives of a supermarket chain aim to understand the average time customers spend shopping during their visits. The average time, represented as μ, has been previously reported as 38 minutes. However, executives suspect that this might not be accurate and opt for a statistical test to verify their hypothesis. A statistical consultant is hired for this purpose. **Data Collection:** The consultant takes a random sample of shopping times. The sample shows a mean time of 44 minutes, with a standard deviation of 10 minutes. **Tasks:** Based on this information, address the following: **(a) Hypothesis Formulation:** - Null Hypothesis (H₀): μ = 38 (The mean shopping time is 38 minutes) - Alternative Hypothesis (H₁): μ ≠ 38 (The mean shopping time is different from 38 minutes) **(b) Decision Making and Errors:** - If the consultant decides not to reject the null hypothesis, she might be making a **Type II error**. This occurs when the null hypothesis is not rejected, although it is false. **(c) Type I Error Description:** - A Type I error involves **rejecting** the hypothesis that μ is **38 minutes** when, in fact, μ is **38 minutes**. This error happens when a true null hypothesis is incorrectly rejected.
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