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. A sample of 35 surveys provided the survey times shown in the file named Fowle. Based upon past studies, the population standard deviation is assumed known with σ = 4 minutes. Is the premium rate justified?
a. Formulate the null and alternative hypotheses for this application.
b. Compute the value of the test statistic.
c. What is the p-value?
d. At α = .01, what is your conclusion?

  • CreatedFebruary 16, 2015
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