SOLUTION: The management of White Industries is considering a new method of assembling it's golf cart. The present method requires 42.3 minutes, on the average, to assemble a cart. The mean
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Question 131159: The management of White Industries is considering a new method of assembling it's golf cart. The present method requires 42.3 minutes, on the average, to assemble a cart. The mean assembly time for a random sample of 24 carts, using the new method, was 40.6 minutes, and the standard deviation of the sample was 2.7 minutes. Using the .10 level of significance, can we conclude that the assembly time using the new method is faster?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
The management of White Industries is considering a new method of assembling it's golf cart. The present method requires 42.3 minutes, on the average, to assemble a cart. The mean assembly time for a random sample of 24 carts, using the new method, was 40.6 minutes, and the standard deviation of the sample was 2.7 minutes. Using the .10 level of significance, can we conclude that the assembly time using the new method is faster?
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Ho: mu = 42.3
Ha: mu < 42.3
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Critical value for left-tail test with alpha=10% and df=23: t = -1.32
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Test statistic:
t(40.6) = (40.6-42.3)/[2.7/sqrt(24)] = -3.0845...
p-value = P(-10 < t < -3.0845) = 0.002
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Conclusion: Since p-value is less than 10%, Reject Ho.
Assembly time with the new method is faster.
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Cheers,
Stan H.
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