A microwave manufacturing company has just switched to a new automated production system. Unfortunately, the new machinery has been frequently failing and requiring repairs and service. Historically, the company has been able to provide its customers with a completion time of 6 days or less. To analyze whether the completion time has increased, the production manager took a sample of 36 jobs and found that the sample mean completion time was 6.5 days with a sample standard deviation of 1.5 days. At a significance level of .10 using the critical value rule, we can show that the completion time has increased.
True
False
Solution:
Here, we have to use one sample t test for population mean.
Null hypothesis: H0: The competition time has not increased.
Alternative hypothesis: Ha: The competition time has increased.
H0: µ = 6 versus Ha: µ > 6
This is an upper tailed test. This is one tailed test.
We are given level of significance = α = 0.10
Xbar = 6.5
S = 1.5
n = 36
df = n – 1 = 35
Critical t value = 1.3062
(by using t-table)
Test statistic formula is given as below:
t = (Xbar - µ)/[S/sqrt(n)]
t = (6.5 – 6)/[1.5/sqrt(36)]
t = 2.0000
P-value = 0.0267
(by using t-table)
P-value < α = 0.10
So, we reject the null hypothesis
There is sufficient evidence to conclude that the competition time has increased.
Answer: True
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