Jerry is considering opening a new ice cream store at a certain location on State Street in Madison. Jerry conducts some analysis and determines that a given location is acceptable only if the number of pedestrians passing the potential location averages more than 100 per hour. To check if this location is acceptable, Jerry records the number of pedestrians observed for each of 40 hours. Jerry finds that the average number of pedestrians that pass the potential location during each of the 40 hours he was observing, is 105.7 per hour. Jerry assumes that he knows the population standard deviation to be 16. Can Jerry conclude at the 1% significance level that the potential location for the ice cream store is acceptable? a. What is the correct set of hypotheses? Answer: Ho: u- 100 and H1: u> 100 v b. Determine the p-value Answer: 0.0122 c. Interpret the results Answer: There is not enough evidence v d. Jerry is concerned with committing a Type II error. Determine the probability of Type II error when the actual mean is 104 pedestrians per hour.

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Jerry is considering opening a new ice cream store at a certain location on State Street in Madison. Jerry conducts
some analysis and determines that a given location is acceptable only if the number of pedestrians passing the
potential location averages more than 100 per hour.
To check if this location is acceptable, Jerry records the number of pedestrians observed for each of 40 hours. Jerry
finds that the average number of pedestrians that pass the potential location during each of the 40 hours he was
observing, is 105.7 per hour.
Jerry assumes that he knows the population standard deviation to be 16. Can Jerry conclude at the 1% significance
level that the potential location for the ice cream store is acceptable?
a. What is the correct set of hypotheses?
Answer: Ho: u = 100 and H1: u> 100 v
b. Determine the p-value
Answer:
0.0122
c. Interpret the results
Answer: There is not enough evidence
d. Jerry is concerned with committing a Type II error. Determine the probability of Type II error when the actual
mean is 104 pedestrians per hour.
Transcribed Image Text:Jerry is considering opening a new ice cream store at a certain location on State Street in Madison. Jerry conducts some analysis and determines that a given location is acceptable only if the number of pedestrians passing the potential location averages more than 100 per hour. To check if this location is acceptable, Jerry records the number of pedestrians observed for each of 40 hours. Jerry finds that the average number of pedestrians that pass the potential location during each of the 40 hours he was observing, is 105.7 per hour. Jerry assumes that he knows the population standard deviation to be 16. Can Jerry conclude at the 1% significance level that the potential location for the ice cream store is acceptable? a. What is the correct set of hypotheses? Answer: Ho: u = 100 and H1: u> 100 v b. Determine the p-value Answer: 0.0122 c. Interpret the results Answer: There is not enough evidence d. Jerry is concerned with committing a Type II error. Determine the probability of Type II error when the actual mean is 104 pedestrians per hour.
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