Question 265452: A firm is studying the production times for two production methods. The firm is satisfied with production method A and is prepared to continue using it if the mean delivery time is the same as or less than for production method B. However, if the firm finds that the mean delivery time for method B is less than that for method A, it will begin using method B.
a.
What are the null and alternative hypotheses?
Assume that independent samples show the following delivery time characteristics for the two production methods.
Method A Method B n=40,x'=13.5,s2=4
n=45
x'=15
s1=4
b.
With = .02, what is your conclusion for the hypotheses from part a? (Show your work.)
c.c.
What action do you recommend regarding selection of a production method?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A firm is studying the production times for two production methods. The firm is satisfied with production method A and is prepared to continue using it if the mean delivery time is the same as or less than for production method B. However, if the firm finds that the mean delivery time for method B is less than that for method A, it will begin using method B.
a.
What are the null and alternative hypotheses?
Ho: u(old)-u(new) <= 0
Ha: u(old)-u(new) > 0
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Assume that independent samples show the following delivery time characteristics for the two production methods.
Method A Method B n=40,x'=13.5,s2=4
n=45
x'=15
s1=4
b.
With alpha = .02, what is your conclusion for the hypotheses from part a?
(Show your work.)
I ran a 2Sample T test with a TI calculator and got the following:
test statistic: t = 1.7257
p-value = 0.0441
Conclusion: Since the p-value is greater than 2%, fail to reject Ho.
c.
What action do you recommend regarding selection of a production method?
Based only on this test, do not change to the new method of production.
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Cheers,
Stan H.
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