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Mathematics, 06.10.2019 10:01 isabellainksow87vn
Acompany selling licenses of new e-commerce software advertised that firms using this software could obtain, on average during the first year, a minimum yield (in cost savings) of 20 percent on average on their software investment. to disprove the claim, we checked with 10 different firms which used the software. these firms reported the following cost-saving yields (in percent) during the first year of their operations: {17.0, 19.2, 21.5, 18.6, 22.1, 14.9, 18.4, 20.1, 19.4, 18.9}. a. do we have significant evidence to show that the software company’s claim of a minimum of 20 percent in cost savings was not valid? test using α = 0.05. b. compute a 95% confidence interval for the average cost-saving yield estimate.
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