A financial analyst of Woolworths is interested in the average number of months that it takes customers to pay off their account debt. He claims that the average number of months it takes is less than four. He takes a sample of fifty customers and records the number of months it takes each customer to pay off his debt. Suppose that the test statistic value to test this claim is calculated as -0.34, determine the p-value.
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
A financial analyst of Woolworths is interested in the average number of months that it takes customers to pay off their account debt. He claims that the average number of months it takes is less than four. He takes a sample of fifty customers and records the number of months it takes each customer to pay off his debt. Suppose that the test statistic value to test this claim is calculated as -0.34, determine the p-value.
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