Is company A’s paperwork processing time lower than the average time of Company
ID: 3247193 • Letter: I
Question
Is company A’s paperwork processing time lower than the average time of Company B? A sample of 30 loans taken at Company A yielded a mean of 38.10 minutes and a standard deviation of 2.58 minutes. Data obtained from Company B of 36 applications indicates that the average time for processing an application is 39.48 minutes, with a standard deviation of 2.48 minutes.
Verify the calculation of the mean, standard deviation, and variance for each set of data using descriptive Statistics tool
b.Test the null hypothesis that company A banks processing time is greater than or equal to Company B’s average versus the alternative hypothesis that Company A time is less than the Company B at the 5 percent significance level. Use the z-test: Two sample assuming Equal Variances from the Data analysis menu In excel
A
b
33.9
40.0
34.8
39.6
35.0
38.5
39.1
40.0
40.1
42.4
37.7
38.6
39.0
42.3
35.7
34.9
40.2
33.0
43.9
41.4
38.0
38.3
34.3
41.6
41.3
41.5
35.4
37.9
39.3
40.0
35.9
43.1
41.5
40.5
37.9
41.8
36.3
41.6
43.0
40.9
39.1
40.9
35.9
40.3
40.5
39.8
34.9
40.8
38.2
36.4
39.1
34.6
36.6
41.1
38.5
34.4
38.3
37.0
39.5
41.4
41.4
41.2
37.8
38.4
37.5
40.2
A
b
33.9
40.0
34.8
39.6
35.0
38.5
39.1
40.0
40.1
42.4
37.7
38.6
39.0
42.3
35.7
34.9
40.2
33.0
43.9
41.4
38.0
38.3
34.3
41.6
41.3
41.5
35.4
37.9
39.3
40.0
35.9
43.1
41.5
40.5
37.9
41.8
36.3
41.6
43.0
40.9
39.1
40.9
35.9
40.3
40.5
39.8
34.9
40.8
38.2
36.4
39.1
34.6
36.6
41.1
38.5
34.4
38.3
37.0
39.5
41.4
41.4
41.2
37.8
38.4
37.5
40.2
Explanation / Answer
a)
p-value of 1-tailed test =0.015373087 < 0.05
hence we reject the null hypothesis
A Mean 38.09666667 Standard Error 0.470130413 Median 38.25 Mode 39.1 Standard Deviation 2.575010322 Sample Variance 6.630678161 Kurtosis -0.432345616 Skewness 0.291202828 Range 10 Minimum 33.9 Maximum 43.9 Sum 1142.9 Count 30Related Questions
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