Question
On December 1, 2013, Jeff Bezos (Founder and CEO of Amazon.com) announced on CBS's 60 minutes that his company plans to develop a delivery drone
On December 1, 2013, Jeff Bezos (Founder and CEO of Amazon.com) announced on CBS's "60 minutes" that his company plans to develop a "delivery drone" that would cut delivery time for products purchased on Amazon.com to an average of 30 minutes or less. Assume that a random sample of 50 deliveries made by a prototype of the drone had an average delivery time of 32.1 minutes with a standard deviation of 5.4 minutes.
a)Test whether this sample provides sufficient evidence against Bezos' claim at the 5% level of significance. What is the p-value of this test and how does it relate to your conclusion?
b)Now use the same data to perform the same test at the 1% level of significance. Did your conclusion change? Did the p-value change? Why, why not?
the solution the website show :
Explanation:
Standard delivery time = 60 minutes
Claim : cut 30 minutes or less
New delivery time = 60 - 30 or less = 30 or greater
n = 50
x = 32.1
s = 5.4
= 30
(a) Hypothesis :
Ho : = 30
H1 : > 30
Test statistics :
t = (x - )/(s/n)
t = (32.1 - 30)/(5.4/50)
t = 2.75
P - value :
We can't find p - value using R
df = n - 1 = 50 - 1 = 49
t = 2.75
P value = 0.004162 = 0.0042
Decision :
Since, P value = 0.0042 < = 0.05
Hence, we reject Ho at = 0.05
Conclusion :
There is sufficient evidence to support the claim that drone delivery cut delivery time on average 30 minutes or less.
(b) Since, P value = 0.0042 > = 0.01
Hence, we tail to reject Ho at = 0.01
And yes, at 1% significance level, conclusion will change.
P value will not be change because P value is independent of significance level.
But in answer (b) p value 0.0042 is actually lower than 0.01, I think this answer is wrong.
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