Real-world or Business Application
The below scenario describes a real-world or business application that utilizes statistical analysis to help resolve a business problem: increasing efficiency by decreasing processing time. Prepare an analysis by completing five steps of the hypothesis testing with one sample. The report should be a minimum of 5 pages in length.
Last week, your manager asked you to analyze staffing needs for the Foreclosure Department. She was so impressed, and she wants you to create another report for her. Her intention is to decrease the processing time per document.
Based on last week’s report, the average number of processed documents per hour was 15.11, with a standard deviation of 2.666. That is, one document was reviewed in 238.25 seconds. To be objective as much as possible, the manager spoke with an employee whose average was exactly 15 documents per hour. The employee claimed that if she was given a larger monitor, the processing time would be shorter.
They conducted an experiment with a large monitor and measured processing time. After reviewing 20 documents, the calculated average processing time per document was 190.58 seconds. The manager believes that a bigger monitor helped reduce the processing time for reviewing foreclosure documents. Conduct a hypothesis test using a 95% confidence level, which means that significance level a = 0.05.
Use the 5-step process, and explain each term or concept mentioned in each section in the following.