Formulating the null and alternative hypotheses

Reference no: EM1311596

Fowle Marketing Research, Inc., bases charges to a client on the assumption that telephone surveys can be completed in a mean time of 15 minutes or less. If a longer mean survey time is necessary, a premium rate is charged. Suppose a sample of 35 surveys shows a sample mean of 17 minutes. Use σ = 4 minutes. Is the premium rate justified?

a. Formulate the null and alternative hypotheses for this application.

H₀: µ =

H_a: µ >

b. Compute the value of the test statistic (to 2 decimals).

c. What is the p-value (to 4 decimals)?

d. Using α = .01, is a premium rate justified for this client?

Reference no: EM1311596

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