The mean length of long-distance telephone calls placed with a particular phone company was known to be

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The mean length of long-distance telephone calls placed with a particular phone company was known to be 7.3 min under an old rate structure. In an attempt to be more competitive with other long-distance carriers, the phone company lowered long-distance rates, thinking that its customers would be encouraged to make longer calls and thus that there would not be a big loss in revenue. Let μ denote the true mean length of long-distance calls after the rate reduction. What hypotheses should the phone company test to determine whether the mean length of long-distance calls increased with the lower rates?

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Introduction To Statistics And Data Analysis

ISBN: 9780495118732

3rd Edition

Authors: Roxy Peck, Chris Olsen, Jay L. Devore

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