Running Head: HYPOTHESIS TESTING 1

Hypothesis Testing
Student’s Name
Institution Affiliation
Date
HYPOTHESIS TESTING 2

1. Perform a test of hypothesis to determine whether the average TiQ is lower than the
industry standard of 2.5 minutes (150 seconds). Use a significance level of α=0.05.
Step 1:

Stating the null hypothesis.

In our case the null hypothesis is that the average Time in Que (TiQ) is 2.5 minutes equal to 150
seconds.

H0: μ = 150

Step 2:

Stating the alternative hypothesis.

In our case the alternative hypothesis is that the average Time in Que (TiQ) is lower than 2.5
minutes equal to 150 seconds.

H1: μ < 150

Step 3:

Set the significance level.

The significance level is α=0.05.
Step 4:

Calculating the test statistic and the corresponding p value.

Sample size = 100
Sample mean = 163.1
Population mean = 150
Standard deviation = 149.3
HYPOTHESIS TESTING 3

Step 5:
Draw a conclusion.

The P value is greater than the significance level:

0.81057 > 0.05 and therefore we fail to reject the null hypothesis.

I think the company should allocate more resources improve its average TiQ.

2. Perform a test of hypothesis to determine whether the average ST with service protocol
PE is lower than with the PT protocol. Use a significance level of α=0.05.
a) Test for PE mean

Step 1:

Stating the null hypothesis.

service time (ST) is 3.5 minutes equal to 210 seconds.

H0: μ = 210

Step 2:

Stating the alternative hypothesis.

the average ST is lower than 3.5 minutes (with PE protocol)

H1: μ < 210

Step 3:

Set the significance level.

The significance level is α=0.05.
Step 4:

Calculating the test statistic and the corresponding p value.

Sample size = 100
Sample mean = 177.62
Population mean = 210
Standard deviation = 215.12
HYPOTHESIS TESTING 4

Step 5:
Draw a conclusion.

The P value is greater than the significance level:

0.06552 > 0.05 and therefore we fail to reject the null hypothesis. The result is not statistically
significant.

Test for PT mean

Step 1:

Stating the null hypothesis.

service time (ST) is 3.5 minutes equal to 210 seconds.

H0: μ = 210

Step 2:

Stating the alternative hypothesis.

the average ST is lower than 3.5 minutes (with PT protocol)

H1: μ < 210

Step 3:

Set the significance level.

The significance level is α=0.05.
Step 4:

Calculating the test statistic and the corresponding p value.

Sample size = 100
HYPOTHESIS TESTING 5

Sample mean = 198.87

Population mean = 210
Standard deviation = 148.22

Step 5:
Draw a conclusion.

The P value is greater than the significance level:

0.2266 > 0.05 and therefore we fail to reject the null hypothesis. The result is not statistically
significant.

The new protocol seems to have not served its purpose as the average ST seem to be not lower
than 3.5 as we have failed to reject the hypothesis that the average is 3.5 minutes equal to 210
seconds.

Summary of conclusions

The conclusion in the first test is to reject the null hypothesis. This means that the null
hypothesis is true and that there is no difference between the measured TiQ and the sample
average that we calculated. This means that there is low probability of getting a lower average
than 150 seconds. This shows that the result is not statistically significant. We fail to reject the
null hypothesis because the sample did not provide enough evidence to conclude that the
hypothesis is true.
In the conclusion of the second test, we also rejected the null hypothesis meaning that the
null hypothesis is true. This means that the average ST is 210. There are possible reasons why
the test led to a conclusion of failing to reject the null hypothesis. These include the variability of
the data. Another possibility is chance which plays a great role in the results. In both cases, the
conclusions mean that the company needs to put in more resources to improve on the average of
the time in que (TiQ) and service time (ST).