Stanford University researchers published an MIT working paper titled “The Economics of Ride Hailing: Driver Revenue, Expenses, and Taxes” (February 2020). One of the objectives of the study was to determine whether ride-share drivers at Uber and Lyft actually make a profit. Data collected from a sample of 1,121 ride-share drivers yielded a mean monthly profit � ¯ = $ 661 with standard deviation � = $ 583 . An Uber executive reports that � , the true mean monthly profit of all its ride-share drivers, is $1,000. You want to test the executive’s figure using � = .10 . Set up the null and alternative hypotheses for the test. Assume that you believe the true mean monthly profit is less than $1,000. Find the rejection region for the test. Compute the test statistic. Use statistical software to find the p-value for the test. What is your conclusion? Show that the conclusion is the same whether you use the rejection region or p-value.
Stanford University researchers published an MIT working paper titled “The Economics of Ride Hailing: Driver Revenue, Expenses, and Taxes” (February 2020). One of the objectives of the study was to determine whether ride-share drivers at Uber and Lyft actually make a profit. Data collected from a sample of 1,121 ride-share drivers yielded a mean monthly profit
�
¯
=
$
661
with standard deviation
�
=
$
583
.
An Uber executive reports that
�
,
the true mean monthly profit of all its ride-share drivers, is $1,000. You want to test the executive’s figure using
�
=
.10
.
Set up the null and alternative hypotheses for the test. Assume that you believe the true mean monthly profit is less than $1,000.
Find the rejection region for the test.
Compute the test statistic.
Use statistical software to find the p-value for the test.
What is your conclusion? Show that the conclusion is the same whether you use the rejection region or p-value.
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