A. Set up Null (H0) and alternate (H1) hypotheses (i.e., Step 1) in business terms (i.e., in plain English). B. Set up Null (H0) and alternate (H1) hypotheses (i.e., Step 1) in statistical terms. C. In the context of the problem, please specify what kind of conclusion will lead to type I error and discuss the implications of making this type of error (i.e., who will it impact and how). (2 + 2 points)
A fast-food restaurant currently averages 6.2 minutes (standard deviation of 2.2 minutes) from the time an order is taken to the time it is ready to hand to the customer ("service time"). An efficiency consultant has proposed a new food preparation process that should significantly shorten the service time. The new process is implemented, and the restaurant management now wants to confirm that the new service time is now shorter. The management takes a random sample of 20 orders and determines that the sample service time is 5.4 minutes, and the sample standard deviation of the times is 1.9 minutes. Using a = .05, test to determine whether the service time using the new process is significantly lower than the old service time.
A. H0 :
H1 :
B. H0 :
H1 :