question archive 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?