A company claims that the average time it takes to resolve customer support tickets has

decreased after implementing a new support system. The previous system had an average
resolution time of 24 hours. To test this claim, a random sample of 30 customer support
tickets is taken after the new system is implemented. The sample data reveals an average
resolution time of 20 hours with a standard deviation of 5 hours.

Questions for Hypothesis Testing:

1. Null Hypothesis (H0): Formulate the null hypothesis that represents the company's
claim about the average resolution time with the new support system.

2. Alternative Hypothesis (H1): State the alternative hypothesis that challenges the
company's claim regarding the average resolution time.

3. Significance Level: Choose a significance level (α) for the hypothesis test. Explain why
you chose this level.

4. Type of Test: Is this a one-tailed or two-tailed test? Justify your choice.

5. Test Statistic: Calculate the test statistic for the hypothesis test using the provided
sample data.

6. Critical Region: Determine the critical region based on the chosen significance level
and test the type.

7. Decision Rule: Based on the test statistic and critical region, decide whether to reject
the null hypothesis or not.

8. P-value: Calculate the p-value associated with the test statistic. What does the p-
value represent in this context?

9. Decision based on P-value: Decide whether to reject the null hypothesis based on
the p-value.

10. Conclusion: Summarize the results of the hypothesis test and provide a conclusion
regarding the company's claim about the average resolution time.
Problem for Hypothesis Testing, Type I, and Type II Errors:

A pharmaceutical company claims that a new drug they developed increases the average life
expectancy of patients with a certain medical condition. The current standard treatment has
an average life expectancy of 70 years. To test the claim, a random sample of 100 patients
receiving the new drug is taken. The sample data shows an average life expectancy of 72
years with a standard deviation of 5 years.

Questions:

1. Null Hypothesis (H0): Formulate the null hypothesis that represents the
pharmaceutical company's claim about the average life expectancy with the new
drug.

2. Alternative Hypothesis (H1): State the alternative hypothesis that challenges the
pharmaceutical company's claim regarding the average life expectancy.

3. Significance Level (α): Choose a significance level (α) for the hypothesis test. Explain
why you chose this level.

4. Type of Test: Is this a one-tailed or two-tailed test? Justify your choice.

5. Test Statistic: Calculate the test statistic for the hypothesis test using the provided
sample data.

6. Critical Region: Determine the critical region based on the chosen significance level
and test the type.

7. Decision Rule: Based on the test statistic and critical region, decide whether to reject
the null hypothesis or not.

8. P-value: Calculate the p-value associated with the test statistic. What does the p-
value represent in this context?

9. Decision based on P-value: Decide whether to reject the null hypothesis based on
the p-value.

10. Type I Error: Define what a Type I error would be in this context.

11. Type II Error: Define what a Type II error would be in this context.

12. Beta (β): Calculate the probability of committing a Type II error (β).

13. Power of the Test: Calculate the power of the test.

14. Sensitivity and Specificity: Define sensitivity and specificity in the context of this
hypothesis test.
15. Concluding Statement: Summarize the results of the hypothesis test and discuss the
potential consequences of Type I and Type II errors.