An auditor for the U.S. Postal Service wants to examine its special two-day priority mail handling to determine the proportion of parcels that actually arrive within the promised two-day period. A randomly selected sample of 1600 such parcels is found to contain 1250 that were delivered on time. Does the sample data provide evidence to conclude that the percentage of on-time parcels is more than 75% (using ( = .01)? Use the hypothesis testing procedure outlined below.
a. Formulate the null and alternative hypotheses.
b. State the level of significance.
c. Find the critical value (or values), and clearly show the rejection and non rejection regions
d. Compute the test statistic.
e. Decide whether you can reject Ho and accept Ha or not.
f. Explain and interpret your conclusion in part e. What does this mean?
g. Find the observed p-value for the hypothesis test and interpret this value. What does this mean?
h. Does this sample data provide evidence (with ((= .01), that the percentage of on-time parcels is more than 75%?
Download free solution (doc)