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Chicken Delight claims that 97% of its orders are delivered within 10 minutes of the time...

Chicken Delight claims that 97% of its orders are delivered within 10 minutes of the time the order is placed. A sample of 80 orders revealed that 74 were delivered within the promised time. At the 0.05 significance level, can we conclude that less than 97% of the orders are delivered in less than 10 minutes? (a) What is the decision rule? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.) Reject Ho if z < (b) Compute the value of the test statistic. (Round the intermediate values and final answer to 2 decimal places.) Value of the test statistic (c) What is your decision regarding the null hypothesis? Reject or Cannot reject: H0 : π ≥ 0.97

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Answer #1

a)

Decision rule :                   reject Ho if test statistic z < -1.64

b)

value of the test statistic z =-2.36

c)

as test statistic falls in rejection region, reject Ho

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