Question

Statistics inferential

1] An executive at the First National Bank is concerned that the bank is losing customers because mortgage applications are taking too long to be processed. The national average, according to an industry newsletter, is 6.5 business days. If the executive determines that the bank is taking longer than the national average then she will make major changes, including demoting or

firing the manager of the mortgage department, even though he has an excellent work history with the bank.

You will conduct a hypothesis test to answer the bank executive’s questions so you collect a random sample of 108 recent mortgage applications. You record the time to process each application (number of business days). The data are located in your Excel file.

needs superscripts and subscripts (such as H0 and HA), and to use the “Insert Symbol” feature for the correct Greek characters (such as α, σ, μ) and mathematical operators (such as ≠, ±, ≤, ≥).

a)  Should your alternative be left-sided, right-sided, or two-sided? Explain.

b) State your null and alternative hypotheses using correct symbols and notation.

c)  What would a Type I error be in this situation and who would be harmed by it? Be specific –

jobs and money are on the line here!

d) What would a Type II error be in this situation and who would be harmed by it? Be specific –

jobs and money are on the line here!

e)  Conduct a one-sample t- test for the mean. Include your your Excel calculations in your Word document.

f)  State the P-value and give the conclusion in context using a significance level of 0.05.

g)  Based on the results of the hypothesis test, what decision should the bank executive make?

h) Construct a 95% confidence interval for the mean mortgage processing time. Express the confidence interval in the form: “The average processing time for mortgages is ?? days. This survey is accurate to within ±?? days, ?? times out of ??”. Refer to your Chapter 16 Notes

(Week 9) or Week 9 discussion for how to convert a confidence level into a “?? times out of ??”

statement. Include your Excel calculations in your Word document.

Data to use here :

Number of Days to Process Mortgage Applications

First National 7 8 2 5 6 7 6 4 8 2 5 9 6 3 7 6 7 9 8 8 5 8 5 6 6 9 7 10 8 9 6 6 11 5 7 4 7 6 12 7 10 5 6 6 6 5 4 4 8 9 3 3 10 5 3 11 7 5 6 2 9 13 7 7 6 4 5 9 3 9 9 8 5 7 2 5 10 11 8 10 5 7 4 14 8 4 7 6 8 5 8 2 5 5 8 6 9 6 5 11 9 6 6 8 12 8 10 6

Answer 1

As per Chegg guidelines we should solve only the first four sub parts of the question. Please post the other parts differently mentioning your requirements