Question

One of the factors that a company will use in determining whether it will locate a new Italian restaurant at a particular location is its distance from local college students. The managers believe that an important measure of distance is the average walking time from the most popular bar in town.  

For a particular site, they believe that if the mean walking time is 8 minutes. To test this in a particular location, a random sample of n = 50 students walking from the bar and then past the location was selected. The mean for this sample was 7.5 minutes. It is believed that the population standard deviation is 1.75 minutes. If the test is conducted using a 0.05 level of significance, what conclusion should be reached?

1. Using the critical value method, the critical value for the test would be:

2. The value of the test statistic is:

Answer 1