The service charge for repairs at an automobile service center is based on a standard time specified for each type of repair. The time specified for the replacement of the universal joint a driveshaft is one hour. To better serve the customers, the management would like to change the time specified in their service fee rates. The manager reviews such repairs and assumed that the workers are working faster than the standard time. The manager observed 30 of such repairs and gets an average repair time of 0.86 hours with a standard deviation of 0.32 hours. Test at the 1% level of significance the null hypothesis for the actual average time for this repair. Show the following steps. a. Formulation of the hypothesis and identifying the claim b. Determining what test to be used c. Identifying the significance level and critical value d. Computation of the test statistic e. Comparing the absolute value of the computed test statictic and critical value, decide whether null hypothesis is accepter or not
The service charge for repairs at an automobile service center is based on a standard time specified for each type of repair. The time specified for the replacement of the universal joint a driveshaft is one hour. To better serve the customers, the management would like to change the time specified in their service fee rates. The manager reviews such repairs and assumed that the workers are working faster than the standard time. The manager observed 30 of such repairs and gets an average repair time of 0.86 hours with a standard deviation of 0.32 hours. Test at the 1% level of significance the null hypothesis for the actual average time for this repair. Show the following steps.
a. Formulation of the hypothesis and identifying the claim
b. Determining what test to be used
c. Identifying the significance level and critical value
d. Computation of the test statistic
e. Comparing the absolute value of the computed test statictic and critical value, decide whether null hypothesis is accepter or not
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