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 if the average time spent on the deliveries does not exceed 40 minutes. The owner has randomly selected 42 customers and has delivered pizzas to their homes in order to test if the mean delivery time actually exceeds 40 minutes. Suppose the P-value for the test was found to be 0.0281. State the correct conclusion based on each significance level.

		At α = 0.025, we do not reject H 0.
		At α = 0.02, we reject H 0.
		At α = 0.03, we do not reject H 0.
		At α = 0.05, we do not reject H 0.

Answer 1

Answer:

Calculated p-value = 0.0281

This p-value is less than 0.05 and 0.03 but greater than 0.025 and 0.02

if p-value is less than significance level, reject the null hypothesis

Option A is correct

[OR]

Answer:

Using p-value approach,

H0 is rejected if p-value < .

At = 0.025

Since p-value ( 0.0281) > 0.025 , we fail to reject H0

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