Statistics: Z-test Hypothesis Testing – #157


Question: A revenue department is under orders to reduce the time small business owners spend on filing out pension form ABC-5500. Previously the average time spent on the form was 6.1 hrs. In order to prove that time to fill out the form is reduced, a sample of 80 small business owners who annually complete the form is randomly chosen, and their completion times are recorded. The mean completion time for ABC-5500 form was 5.8 hrs. with a standard deviation of 2 hrs. In order to prove the time to complete the form is reduced, state the appropriate null and alternative hypotheses to test.

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