A local eat -in pizza restaurant wants to investigate the possibility at startin

Question

A local eat -in pizza restaurant wants to investigate the possibility at starting to deliver pizzas. The owner of the store has determined that home delivery will be successful if the average time spent on the deliveries does not exceed 32 minutes The owner has randomly selected 23 customers and has delivered pizzas to their homes in order to test if the mean delivery time actually exceeds 32 minutes. Suppose the P-value for the test was found to be 0.0293. State the correct conclusion A. At alpha = 0.02, we reject H_0. B. At alpha = 0.03, we fail to reject H_0. C. At alpha = 0.025, we fail to reject H_0. D. At alpha = 0.05, we fail to reject H_0.

Explanation / Answer

We know that if the P-value is less than the significance level then we reject the null hypothesis otherwise we fail to reject.

Here P-value is 0.0293

a) Here significance level is 0.02<0.0293, so we fail to reject

Incorrect option

b) Here significance level is 0.03>0.0293 So we reject the null hypothesis

Incorrect option

c) Here significance level is 0.025<0.0293, So we fail to reject null hypothesis

Correct option

d) Incorrect option.

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