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Stephen is testing the difference in means between time it takes to travel school in a bus and time it takes to travel to school in a car. Stephen hypothesizes that it takes more time to travel in a bus. He calculates a p-value of 2%. He concludes at a 1% significance level that the true mean is greater for a bus than a car.


Where did Stephen go wrong in his conclusion? Explain in detail.

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Answer:

Kindly check explanation

Step-by-step explanation:

To test for Difference in mean times

Null hypothesis, H0 will be, there is no difference in mean times ; m1 = m2

Alternative hypothesis, there is difference in mean times ; m1 ≠ m2

Decision region :

When p value < α ; reject the Null

Here. ;

Pvalue = 2% = 0.02

α = 1% = 0.01

Pvalue > α

0.02 > 0.01

Since, Pvalue > α ; we do not reject the Null ;

Hence, conclusion should be, there is no difference in mean times of bus and car

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