Golden Crest is testing two alternative order processing systems. System 1 processes orders on a simple first
Question:
Golden Crest is testing two alternative order processing systems. System 1 processes orders on a simple “first come, first served” basis. System 2 uses a more sophisticated simulation based technique. Using a sample of 10 orders processed under System 1 and 10 orders processed under System 2, you find the average delivery time for the System 1 sample is 29.3 days, with a standard deviation of 2.5 days. For the System 2 sample, average delivery time is 25.1 days with a standard deviation of 1.7 days.
a. Review the hypothesis testing approach described in Chapter 10 for testing the difference between two population means using the t distribution. Use that hypothesis testing approach to determine if sample evidence here is sufficient to reject a “no difference in average delivery times” null hypothesis at the 5% significance level.
b. Use one-way analysis of variance to determine if there is sufficient sample evidence to reject the “no difference” null hypothesis at the 5% significance level.
c. Comment on the connection between the tstat and Fstat values that you produced in parts a and b.
d. Comment on the connection between the tc and Fc values that you used in parts a and b.
e. Comment on the connection between the p-values that you produced in parts a and b.
Step by Step Answer:
Understanding Business Statistics
ISBN: 978-1118145258
1st edition
Authors: Stacey Jones, Tim Bergquist, Ned Freed