Question

The management of White Industries is considering a new method of assembling its golf cart. The present method requires a mean time of 42.3 minutes 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 0.10 level of significance, can we conclude that the assembly time using the new method is faster?

What is the decision rule? (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places.)

Compute the value of the test statistic. (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places.)

What is your decision regarding H0? Reject Fail to reject

Answer 1

H0: $\mu$ = 42.3

Ha: $\mu$ > 42.3 .

t critical value at 0.10 level with 23 df = -1.319

Decision rule - Reject H0, if t < -1.319

Test statistics

t = $\bar{x}$ - $\mu$ / S / sqrt(n)

= 40.6 - 42.3 / 2.7 / sqrt(24)

= -3.085

Since test statistics falls in rejection region, we have sufficient evidence to reject H0.

we conclude at 0.10 level that we have enough evidence to support the claim.

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