Toll stations on highway

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Reference no: EM133268133

You are the manager of some toll stations on a highway. To find out if your booth operators pocket any of the money they handle, you compare the revenue each operator generates with the average of all operators. You fire any attendant who consistently generates less revenue than the average.

Suppose the distribution of tolls collected per day per booth is normal with a mean of $280 per day and a standard deviation of $35. You've hired a new person and recorded the following daily revenues for his toll station: $225, $235, $275, $360, $359, $175, and $150. If you are willing to accept a 5% chance of mistakenly firing someone who is honest, should you fire him? What would be the P value for your test?

Reference no: EM133268133

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