Use the traditional method to test the given hypothesis. Assume that the population is normally distributed and that the sample has been randomly selected. Select the appropriate response.

With separate waiting lines for each checkout, a store manager finds that the standard deviation for the waiting times on Monday mornings is 5.7 minutes. After switching to a single waiting line, he finds that for a random sample of 29 customers, the waiting times have a standard deviation of 4.9 minutes. Use a 0.025 significance level to test the claim that with a single line, waiting times vary less than with separate lines.
Select the correct test statistic and critical value.

A) Test statistic: χ^2 = 18.462. Critical value: χ^2 = 15.308.
B) Test statistic: χ^2 = 20.692. Critical value: χ^2 = 15.308.
C) Test statistic: χ^2 = 20.692. Critical value: χ^2 = 7.815, 15.308.
D) Test statistic: χ^2 = 18.462. Critical value: χ^2 = 7.815, 15.308.

1 answer

To test the hypothesis that the waiting times with a single line vary less than the waiting times with separate lines, we can use the chi-square test for variance.

Step 1: Define the Hypotheses

  • Null Hypothesis (\(H_0\)): The variance of waiting times with a single line is greater than or equal to the variance of waiting times with separate lines.
  • Alternative Hypothesis (\(H_a\)): The variance of waiting times with a single line is less than the variance of waiting times with separate lines.

Step 2: Identify the Parameters

  • Population variance with separate lines (\(\sigma_0^2\)) = (5.7)^2 = 32.49 minutes²
  • Sample standard deviation with a single line (\(s^2\)) = (4.9)^2 = 24.01 minutes²
  • Sample size (n) = 29

Step 3: Calculate the Test Statistic

The test statistic for the chi-square test for variance is calculated using the formula:

\[ \chi^2 = \frac{(n-1) \cdot s^2}{\sigma_0^2} \]

Plugging in the values:

\[ \chi^2 = \frac{(29-1) \cdot 24.01}{32.49} \] \[ \chi^2 = \frac{28 \cdot 24.01}{32.49} \approx \frac{672.28}{32.49} \approx 20.692 \]

Step 4: Determine the Critical Value

Since this is a one-tailed test (we are testing if the variance is less), we will use the \(\chi^2\) distribution with \(n-1 = 28\) degrees of freedom.

Using a chi-square distribution table or calculator, we find the critical value for \(\alpha = 0.025\) and 28 degrees of freedom:

  • Critical value (\( \chi^2_{\text{critical}} \)) is approximately 15.308.

Step 5: Conclusion

Now we can compare the test statistic with the critical value:

  • Test statistic: \(\chi^2 = 20.692\)
  • Critical value: \(\chi^2 = 15.308\)

Since \(20.692 > 15.308\), we fail to reject the null hypothesis.

Final Answers:

Test statistic: \(\chi^2 = 20.692\). Critical value: \(\chi^2 = 15.308\).

Therefore, the correct answer is:

B) Test statistic: χ² = 20.692. Critical value: χ² = 15.308.