Question

A company manager plans to purchase a machine. The company requires a high quality machine. The manager is currently considering two companies that supply this machine. The machine from company A can produce approximately1050 units in average per day, but the standard deviation of this machine is about 250 units per day; while the machine from company B can produce approximately 900 units in average per day, but the standard deviation of this machine is about 100 units per day. Both of these two companies guarantee at least 10 years life. In addition, both prices are similar although machine A is a little bit higher. Price is not the main concern for the manager because both prices are under their budget. Why should the manager conduct the test about the difference between two population means AND the test about the difference between two population variances or both? Discuss and explain your reasons. You must provide your statistical analysis and reasons.

Answer 1

Answer:

The director should lead the two tests:

i)

the test about the contrast between two populace variances.

ii)

the test about the distinction between two populace implies.

Clarification:

We note that there is huge distinction between standard deviation of Company A: 250 and standard deviation of Company B: 100.

For Hypothesis test of hugeness of distinction between two autonomous methods, the strategy of figuring the Test statistic is not the same as whether there is centrality contrast between standard deviation of the two examples or not.