Question

An electric supplier tracks the response time to customers reported outages. The values shown below are...

  1. An electric supplier tracks the response time to customers reported outages. The values shown below are a random sample of 40 of the response time (in minutes) for one operating division of this utility during a single month.
    77
    80
    80
    84
    84
    85
    86
    86
    87
    87
    89
    93
    94
    94
    96
    96
    97
    97
    97
    98
    99
    100
    100
    102
    102
    103
    104
    104
    104
    105
    105
    106
    106
    109
    110
    110
    115
    125
    127
    128

The utility company claims that their response to emergency outages is under two hours. Using a confidence level of 95% and the proper test statistic, determine if the utility company on average does respond within the two hours.

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Answer #1

M = 98.775
t = 2.02
sM = √(12.272/40) = 1.94

μ = M ± t(sM)
μ = 98.775 ± 2.02*1.94
μ = 98.775 ± 3.92414

95% CI [94.85086, 102.69914]

Interval is less than 120 minutes

SO, claim is right

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