Hillary N.

asked • 12/11/15

Statistics, P-value. Help please!

A local eat-in pizza restaurant wants to investigate the possibility of starting to deliver pizzas. The owner of the store has determined that home delivery will be successful if the average time spent on the deliveries does not exceed 30 minutes. The owner has randomly selected 17 customers and has delivered pizzas to their homes in order to test if the mean delivery time actually exceeds 30 minutes. Suppose the P-value for the test was found to be 0.0274. State the correct conclusion.
 
I am having a hard time understanding this problem, if someone could explain it, I'd really appreciate it. 

1 Expert Answer

By:

Atif Z. answered • 12/11/15

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Tutor | Data Scientist | Data Engineer | Data Creative |

Atif Z.

In his original hypothesis or the null hypothesis, H0:
 
When he tested with 17 customers, his p value turned out 0.0274, which was really low.
 
p value can be from 0 - 1.
 
Here are the cases of p-value.
 
p has to be higher than 0.05 in order for hypothesis to be considered reasonable.

If the p is lower than 0.05, then the H0 or null hypothesis is not true, and an alternative hypothesis is the answer.

If it is around 0.05, then the hypothesis is marginal.
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12/11/15

Atif Z.

So yes, since the null hypothesis failed.
as p-value of 0.0274 if lower than 0.05,
he is making deliveries which is taking longer than 30 minutes.
 
I hope this helps.
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12/11/15

Atif Z.

hold on!
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12/11/15

Atif Z.

"The owner has randomly selected 17 customers and has delivered pizzas to their homes in order to test if the mean delivery time actually exceeds 30 minutes. "
 
This is the reverse case!!!
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12/11/15

Atif Z.

He is testing testing if the deliveries will exceed 30 minutes NOT is the deliveries will stay within 30 minutes.
 
Therefore, since the p-value is 0.0274 for deliveries exceeding 30 minutes of the average delivery time or mean.
 
Yes, most of his deliveries are being made within the 30 minute time frame.
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12/11/15

Atif Z.

FYI. Many people decide, before doing a hypothesis test, on a maximum p-value for which they will reject the null hypothesis. This value is often denoted α (alpha) and is also called the significance level. [U Texas]
 
Make sure you know how significance level of the hypothesis. 
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12/11/15

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