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The management of the Ceebler Fairy Corporation is considering relocating the corporate office to a new location outside His Wood Forest. Management is concerned that the commute times of the employees to the new office might be too long.?The company decides to survey a sample of employees at other companies in the same office forest to see how long these employees are commuting to the office. A sample of 23 employees indicated that the employees are commuting X (bar) = 33 minutes and s = 1 minute, 45 seconds.
a. Using the 0.01 level of significance, is there evidence that the population mean is above 32 minutes??
b. What is your answer in (a) if X (bar) = 37 minutes and s = 27 minutes?
c. Look at your answers for a and b above and discuss what you can learn from the results about the effect of a large standard deviation.
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