A company is developing a new high-performance wax for cross country ski racing. In order to justify the price marketing wants, the wax needs to be very fast. Specifically, the mean time to finish their standard test course should be less than 55 seconds for a former Olympic champion. To test it, the champion will ski the course 8 times. The champion's time (selected at random) 57.9, 62.9, 50.6, 50.5, 48.2, 47.2, 50.2, and 43.1 seconds to complete the test course.

1. Should they market the wax? Assume the assumptions and conditions for appropriate hypothesis testing are met for the sample. Assume (Sig=0.05). what is the null and alternative hypothesis? Choose the correct answer below.

A) H0: u=55 vs. HA: u>55

B) H0: u>55 vs. HA: u=55

C) H0: u<55 vs. HA: u=55

D) H0: u=55 vs. HA: u<55

2.What is the value of the test statistic?

The test statistic is (round to two decimal places as needed).

3.What is the P-value of the test statistic?

P-value = (round to three decimal places as needed).

4. Should they market the wax?

A) Yes. There is insufficient evidence to conclude the mean time is less that 55 seconds.

B) No. There is insufficient evidence to conclude the mean time is less that 55 seconds.

C) Yes. There is sufficient evidence to conclude the mean time is less that 55 seconds.

D) No. There is sufficient evidence to conclude the mean is less that 55 seconds.

5. Suppose they decide not to market the wax after the test, but it turns out that the wax really does lower the champion's average time to less than 55 seconds. What kind of error have they made? Explain the impact to the company of such an error.

A) They have made a Type I error and will lose the potential profit from selling the wax.

B) They have made a Type I error and customers might demand their money back.

C) They have made a Type II error and customers might demand their money back.

D) They have made a Type II error and will lose the potential profit from selling the wax.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 1Answer D H0 u55 vs HA u 55 The null hypothesis H0 is that the mean of the population is equal to 55 seconds while the alternative hypothes... View the full answer