BUSI 650 - Hypothesis Tes�ng Assignment

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Background: A fast food restaurant claims that the average wait �me for a drive-thru order is 3 minutes.
The restaurant manager wants to test this claim with a sample of customers.

Task: You have been hired as a data analyst to help the restaurant manager with hypothesis tes�ng and
confidence intervals.

1. Formulate the null and alterna�ve hypotheses for this situa�on.

2. If a random sample of 50 customers produces a sample mean wait �me of 2.8 minutes with a
popula�on standard devia�on of 0.4 minutes, calculate the test sta�s�c using a z-value.

3. Calculate the p-value for this test and interpret the results at a significance level of 0.05.

4. Determine the cri�cal value for a one-tailed test with a significance level of 0.05 and compare it
with the calculated z-value. What is your conclusion?

5. How would decreasing the sample size from 50 to 25 affect your conclusion? Explain.

6. Provide two other examples of situa�ons or industries where hypothesis tes�ng and confidence
intervals could be useful, and briefly explain why.

Good luck!