Helmet Telecom Ltd. claims that, on average, their new design for a wireless router has increased the speed to at least 1.9 Gbps, a big improvement over 1.5 Gbps maximum of the previous version. An independent testing laboratory in Etobicoke found that a random sample of 10 of the newest version routers delivered speed of 1.83 Gbps, on average, with a standard deviation of 0.1 Gbps. Test the manufacturer's claim using a 0.01 significance level. Assume that the speeds are approximately normally distributed as the histogram of the sample values is roughly symmetric and bell-shaped, so t-distribution is applicable for hypothesis testing.

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Helmet Telecom Ltd. claims that, on average, their new design for a wireless router has increased the speed to at least 1.9 Gbps, a big improvement over 1.5 Gbps maximum of the previous version. An independent testing laboratory in Etobicoke found that a random sample of 10 of the newest version routers delivered speed of 1.83 Gbps, on average, with a standard deviation of 0.1 Gbps. Test the manufacturer's claim using a 0.01 significance level. Assume that the speeds are approximately normally distributed as the histogram of the sample values is roughly symmetric and bell-shaped, so t-distribution is applicable for hypothesis testing.

Round to 3 decimal places where appropriate.

(a) State the null and alternative hypotheses, identify which one is the claim and type of the test.

H0H0:                

H1H1:                

Which one is the claim?

  • H1H1
  • H0H0

 

The test is       .

For parts (b), (c) use the correct sign for the critical t-value and test statistic.

(b) What is the critical t-value?  

(c) What is the test statistic? 

(d) Is the null hypothesis rejected? Is the alternative hypothesis supported?

  • Fail to reject H0H0 (claim) and fail to support H1H1
  • Reject H0H0 (claim) and support H1H1
  • Reject H0H0 and fail to support H1H1 (claim)
  • Fail to reject H0H0 and support H1H1 (claim)



(e) Select the correct statement.

  • At 0.01 significance level, there is sufficient sample evidence to warrant rejection of the claim that, on average, the new wireless router has increased the speed to at least 1.9 Gbps.
  • At 0.01 significance level, there is not sufficient evidence to warrant rejection of the claim that, on average, the new wireless router has increased the speed to at least 1.9 Gbps.
  • We prove that the average speed is still 1.5 Gbps.
  • We are sure that, on average, the speed is between 1.83 Gbps and 1.9 Gbps.
  • None of the above.
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