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A hospital is studying the delivery time of two laundry companies.
The hospital has been using Company A for the past year and is basically satisfied with time the company takes to return laundry to the hospital. The hospital is prepared to stay with Company A if the mean delivery time is the same as or less than that of a competitor company - Company B. However, if the hospital finds that the mean delivery time of Company B is less than that of Company A, it will start using the laundry services of Company B. Independent samples showed the following delivery time characteristics for the two companies.
n1 = 50 n2 = 30x1 = 14 x2 = 12.5s1 = 3 s2 = 2
What are the null and alternative hypotheses for this situation?
With an α = .05, what is your conclusion for the hypotheses from part (a)? What action do you recommend in terms of which laundry company the hospital should contract?
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