Question

A local eat-in pizza restaurant wants to investigate the possibility of starting to deliver pizzas. The owner of the store has determined that home delivery will be successful only if the average time spent on a delivery does not exceed 40 minutes. The owner has randomly selected 17 customers and delivered pizzas to their homes in order to test whether the mean delivery time actually exceeds 40 minutes. Suppose the p-value for the test was found to be .0270. State the correct conclusion.

Answer 1

As per the given scenario, P value is .0270 that is less than .05. It means that at 95% significance level, the P value is smaller than .05, then null hypothesis will be rejected and alternative hypothesis will be rejected.

As per the given scenario,

Null hypothesis = mean delivery time does not exceed 40 minutes

Alternative hypothesis = mean delivery time exceeds 40 minutes

Now, it can be concluded that at 95% significance level, null hypothesis will be rejected and alternative hypothesis will be selected. So, delivery time will exceed 40 minutes.