A local bank claims that the waiting time for its customers to be served is the lowest in the area. A competitor bank checks the waiting times at both banks. Test the local bank’s claim. Use the information given below. State the null/ alternative hypotheses, the significance level, the critical value, the test statistic, the decision and conclusion.

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Question

A local bank claims that the waiting time for its customers to be served is the lowest in the area.  A competitor bank checks the waiting times at both banks.  Test the local bank’s claim.  Use the information given below.  State the null/ alternative hypotheses, the significance level, the critical value, the test statistic, the decision and conclusion.
 
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anonymous · Answer

Local Bank       Competitor Bank
Sample size                 n1 = 45                   n2 = 50
Average waiting
time in minutes              2.3 min.                2.6 min.
for each sample
Sample Standard
Deviation of                s1 = 1.1 min.         s2 = 1.0 min.
each sample