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A salesman paid 12 visitsto his area sales manager and noted that he had to wait for 10,15,20,17,11,25,30,27,36,40,5 and26 min the area sales manager claim salesman do not have to wait for more than 20 min before being called using the sign test verify at 0.05 level of significance the claim made by area sales manager

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Values; of; W.T. = (Wait; time - 20; minutes) ; are :;

W.T. = -10, -5, 0, -3, -9, 5, 10, 7, 16, 20, -15, 6

Mean; of; W.T. =mu =frac2212= 1.83
sigma =10.27

Z = normalized variable at W.T.
    = fracW.T.-20sigma =frac-1.83310.27=-0.1785

by using Z Table

(-0.1785<Z<0) = (0<Z<0.1785) = 0.071

So, significance level of 20 minutes average waiting time is 7.1% or 0.071

So, claim of  area sales manager  is wrong.

Posted by

Deependra Verma

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