Company A is trying to sell its website to Company B As part

Company A is trying to sell its website to Company B. As part of the sale, Company A claims that the average user of their site stays on the site for 10 minutes. To test this claim Company B collects the times (in minutes) below for a sample of 11 users. Assume normality.

Assignment 6q3 data :

Construct a 99% confidence interval for the true mean time spent on the web site.

a) What is the lower limit of the 99% interval? Give your answer to three decimal places. Enter 0 if your lower limit is less than 0.  

b) What is the upper limit of the 99% interval? Give your answer to three decimal places.  

c) Based on this data, do you believe the claim made by Company A?

No because 10 is inside the interval.Yes because 10 is not inside the interval.    Yes because 10 is inside the interval.No because 10 is not inside the interval.

d) Which of the following assumptions should be checked before constructing the above confidence interval?

the data need to be skewedthe data need to follow a t distribution     the data need to follow a normal distributionthe data need to have small variance

Solution

a) .89

b) 8.86

c) for this test p-value is 0.002 which is less than 0.01 so we reject H0: average user of their site stays on the site for 10 minutes.

d)the data need to follow a t distribution