Question

The competitive advantage of small American factories such as Tolerance Contract Manufacturing lies in their ability to produce parts with highly narrow requirements, or tolerances, that are typical in the aerospace industry. Consider a product with specifications that call for a maximum variance in the lengths of the parts of 0.0005. Suppose the sample variance for 30 parts turns out to be s2 = 0.0006. Use α = 0.05 to test whether the population variance specification is being violated

. A) State the null and alternative hypotheses

. B) Find the value of the test statistic.

C)Find the p-value. (Round your answer to four decimal places.)

D)State your conclusion.

Answer #1

An automotive part must be machined to close tolerances to be
acceptable to customers. Production specifications call for a
maximum variance in the lengths of the parts of 0.0006. Suppose the
sample variance for 40 parts turns out to be s2 =
0.0007. Use α = 0.1 to test whether the population variance
specification is being violated.
Select one:
a. Test statistic = 51.39, reject H0
b. Test statistic = 51.39, can't reject H0
c. Test statistic = 45.5, reject...

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INNOVATION
Deep Change: How Operational Innovation Can Transform Your
Company
by
Michael Hammer
From the April 2004 Issue
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8.95
In 1991, Progressive Insurance, an automobile insurer based in
Mayfield Village, Ohio, had approximately $1.3 billion in sales. By
2002, that figure had grown to $9.5 billion. What fashionable
strategies did Progressive employ to achieve sevenfold growth in
just over a decade? Was it positioned in a high-growth industry?
Hardly. Auto insurance is a mature, 100-year-old industry...

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