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The waiting time to place an order at a branch of a fast-food chain during the lunch hour has had population mean of 3.55 minutes, with a population standard deviation of 1.1 minute. Recently, in an effort to reduce the waiting time, the branch has experimented with a system in which there is a single waiting line. A sample of 100 customers during a recent lunch hour was selected, and their mean waiting time to place an order was 3.18 minutes. Assume that the population standard deviation of the waiting time has not changed from 1.1 minutes.
a. At the 0.05 level of significance, using the critical value approach to hypothesis testing, is there evidence that the population mean waiting time to place an order is less than 3.55 minutes?
b. At the 0.05 level of significance, using the p-value approach to hypothesis testing, is there evidence that the population mean waiting time to place an order is less than 3.55 minutes?
c. Interpret the meaning of the p-value in this problem.
d. Compare your conclusion in (a) and (b).
Note that Σ x = 2233 and Σ x 2 = 138,053. At the 5% level of significance, can the instructor conclude that the new mean is different from 64?
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