A real estate agent is working for a developer who claims that the average commute time to downtown is 20 minutes with a standard deviation of 7 minutes. Stephon is an independent real estate agent and wants to check the times for his client. He took a random sample of 15 commute times and found an average of 26 minutes. He did hypothesis testing using a significance level of 5%. Which conclusion could he make?
Answer
A
The z-statistic is 0.22, so the null hypothesis should not be rejected.
B
The z-statistic is 1.69, so the null hypothesis should not be rejected.
C
The z-statistic is 3.32, so the null hypothesis should be rejected.
D
The z-statistic is 3.67, so the null hypothesis should be rejected.