Question
ABC Auditors is concerned with the amount of time it takes interns to audit cash. ABC Auditors believes it is taking interns too much time
ABC Auditors is concerned with the amount of time it takes interns to audit cash. ABC Auditors believes it is taking interns too much time to audit cash and this is reducing the profitability of audits. ABC Auditors budgets 6 hours for interns to audit cash. To investigate this problem, the managing partner randomly samples 10 interns and reviews the amount of time it took each intern to audit cash. The results of this sample are below (in hours):
8 11 5 6 7 8 6 4 8 3
Assuming the times are normally distributed with a standard deviation of 2 hours, can the managing partner infer at the 5% significance level that the mean amount of time interns spend auditing cash is greater than 6 hours?
Show all work. How did you find P- value? How is that used to answer the question?
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