Author Question: Revenue management methodology was originally developed for the banking industry. Indicate whether ... (Read 54 times)

jilianpiloj · **on:** Jun 24, 2018

Revenue management methodology was originally developed for the banking industry.
Indicate whether the statement is true or false

Question 2

Fast n Clean operates 12 laundromats on the east side of the city. All of Fast n Clean's clothes dryers have a label stating 20 minutes for 1.00.. You question the accuracy of the dryers' clocks and decide to conduct an observational study. You randomly select 36 dryers in several different Fast n Clean locations, put 1.00 in each and time the drying cycle. The sample mean drying time is 20 minutes and 25 seconds. The manufacturer of the dryer states that the standard deviation for 20-minute drying cycles is 1 minute.
a. Using the sample data and = .05, test the validity of the label on the dryers. Apply the p-value and critical value approaches to conducting the two-tail hypothesis test.
b. Conduct the same two-tail hypothesis test, but use the confidence interval approach to hypothesis testing.

nathang24 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

F

Answer to Question 2

a. p-value = .0124 < .05, so reject H0: = 20
z-score = 2.50 > 1.96, so reject H0: = 20
b. confidence interval 20.09 to 20.74 does not include 20, so reject H0: = 20