Question
A large Australia-owned supermarket chain has a target average processing time of 90 seconds for customers who reach a checkout in the 12 items or
A large Australia-owned supermarket chain has a target average processing time of 90 seconds for customers who reach a checkout in the "12 items or less" queue. To test that its Hobart city store is meeting this target, the processing time taken by a random sample of 50 customers in this queue is recorded. The average processing time of the sample is found to be 101 seconds with a sample standard deviation of 35 seconds. Answer the following questions.
a) Using a 1% level of significance, conduct a hypothesis test to decide whether there is evidence to show that the population average of processing time in the Hobart city store exceeds the target average process time.
b) Explain in the context of the above scenario the meanings of making a type I error and a type II error.
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