Briefly describe how to select the test statistics

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The policy of a banking corporation is to open an additional teller counter if the average customer waiting time is over 15 minutes. A random sample of 120 customers from one of its bank offices shows a mean customer waiting time of 15.4 minutes and a standard deviation of 3 minutes.

(a) Do these statistics provide sufficient evidence to justify the opening of an additional teller counter in this bank office? Apply the p-value approach of hypothesis testing and use a 0.05 level of significance.

(b) Briefly describe Type I and Type II errors and their implications to the situation.

(c) What assumption is necessary before conducting a test of hypothesis?

(d) Briefly describe how to select the test statistics in (a).

Reference no: EM132399694

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