An internet provider advertises its typical response time on the internet is 200 ms (millisecond). For reference, 200 ms are about one-fifth of a second. A higher the speed, the fast the internet response. An independent internet traffic monitor tracks internet speed. For this provider, the monitor selected a random sample of 50 users and reported a slower speed of 194.755ms with a standard dev of 12.25ms.

a) What significance level would you use? Explain.

b) The question mentions “a random sample”. Explain two reasons why randomization is important.

c) The question mentions a sample size. What are two reasons why a larger sample size would be of benefit?

d) Is there convincing evidence that the internet provider is incorrectly reporting its speed? (Note: this requires a full SPDC model).