question archive On December 1, 2013, Jeff Bezos (Founder and CEO of Amazon

On December 1, 2013, Jeff Bezos (Founder and CEO of Amazon

Subject:BusinessPrice: Bought3

On December 1, 2013, Jeff Bezos (Founder and CEO of Amazon.com) announced on CBS's "60 minutes"

that his company plans to develop a "delivery drone" that would cut delivery time for products

purchased on Amazon.com to an average of 30 minutes or less. Assume that a random sample of 50

deliveries made by a prototype of the drone had an average delivery time of 32.1 minutes with a

standard deviation of 5.4 minutes.

 

a) Test whether this sample provides sufficient evidence against Bezos' claim at the 5% level of

significance. What is the p-value of this test and how does it relate to your conclusion?

 

b) Now use the same data to perform the same test at the 1% level of significance. Did your conclusion

change? Did the p-value change? Why, why not?

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