John works in the local waste station and notes that on any given day 1500 tons of
Question:
John works in the local waste station and notes that on any given day 1500 tons of waste, with a standard deviation of 500 tons is being received in these types of facilities across the city. John however, has become more quantitatively aware and finds that on average at his tip that he receives 1700 tons of waste per day. John would like to know if the amount of waste he receives is significantly more than the other tips.
(a) To test Johns question what test would you use and why? Justify your answer.
(b) What level of significance would be applicable for this test and why?
(c) Conduct the hypothesis test using the critical value approach with alpha set to
5%.
(d)Construct a table using a significance levels of 0.5, 1.0, 2.5, 5 and 10% and
investigate how the conclusion would change as a result of changing the
significance value.