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. [8 marks]
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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