Question 362868: A manufacturer of desks has made 200 per week for the last year with a standard deviation (σ) of 16. Recently, a manufacturing change was made and now production is at 205 desks per week for the 50 randomly sampled days. Determine, at the 0.01 level of significance (α) using a 1 tail test if the change made any difference.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A manufacturer of desks has made 200 per week for the last year with a standard deviation (σ) of 16.
Recently, a manufacturing change was made and now production is at 205 desks per week for the 50 randomly sampled days.
Determine, at the 0.01 level of significance (α) using a 1 tail test if the change made any difference.
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Ho: u <= 200
Ha: u > 200
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t(205) = (205-200)/[16/sqrt(50)] = 2.2097
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p-value = P(t > 2.2097 when df = 49) = 0.0159
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Conclusion: Since the p-value is greater than
1%, fail to reject Ho.
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The test does not show the change made a difference
at the 1% level of significance.
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Cheers,
Stan H.
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