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Otto Carnage retired from Demolition Derby 1 0 years ago and entered another profession for which he was eminently qualified - valet parking lot attendant.

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Otto Carnage retired from Demolition Derby 10 years ago and entered another profession for
which he was eminently qualified - valet parking lot attendant. Otto has been very successful
and now owns a large parking structure in downtown L.A. The business only accepts cash.
Otto suspects his cashiers of 'skimming' some of the cash by recording a smaller amount on
the cash register than the customer actually paid and pocketing the difference. To prevent
trouble with the cashier's union, Otto must be able to prove 'skimming' beyond reasonable
doubt (.01 level of significance) before any accusations are made. During the past week, Otto
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Workbook in Business Statistics, Thomas Wedel
observed the amounts paid by 100 customers from a nearby high-rise using binoculars. The
100 cars that Otto observed had an average bill of $10 with a standard deviation of $5. There
is an automatic sensor which records the number of cars leaving the facility gate. Last week
10,000 cars passed through the gate and the total cash receipts reported by the attendants was
$90,000 for an average of $9 per car.
a. Can Danny prove 'skimming?' State the null and alternative hypotheses. Find ZTest and
ZTable.. What is your conclusion?
b. Find the p-value.
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