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Question 4
The Odo Rice restaurant claims that the average waiting time of customers to be served is not above
the benchmark of 2.75 minutes set by the Ghana Food Quality and Delivery Assurance and hence,
they are the best in customer service. To determine the efﬁciency of the company’s claim, a research
quality assurance student sampled the time spent by 22 customers at their Accra Circle branch. It
was revealed that the mean waiting time was 3 minutes with a standard deviation of 1 minute. Use
0.01 significance level.
a. Formulate the null and alternative hypotheses both in statistics and in words
b. Justify your choice of the test statistic and compute the value of the test statistic and the
critical value
c. Estimate the pvalue
d. What is your decision regarding the null hypothesis using the p—value approach?
e. Is Odo Rice the best in customer service? Conclude practically but brieﬂy. If so, is the
difference due to chance? Explain.
f. What difference would it make had a significance level of 20% been chosen. Do not
compute. Just explain.

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