A manufacturer contemplating the purchase of new toolmaking equipment has specified that, on average, the equipment should not require more than 10min of setup time per hour of operation. The purchasing agent visits a company where the equipment being considered is installed; from records there the agent notes that 40 randomly selected hours of operation included a total of 7hr and 30min of setup time, and the standard deviation of setup time per hour was 3.0 min. Based on this sample result, can the assumption that the equipment meets setup time specifications be rejected at the 1 percent level of significance?
Answer should be written on word doc
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