Question

Management at the Kimberly Clark Corporation want to reduce the cost of maintaining their copy machines. The current cost is $364 per unit. This year, they hired a new maintenance crew hoping for better results. Suppose a random sample audit of 36 copy machines showed a mean repair cost of: = $330, S = $120. (5 pts each)

a) Give the null and alternative hypotheses for maintenance costs.

b) Using the sample information provided, calculate the value of the test statistic. Show your work.

c) State the correct rejection region for α = 0.05.

d) What can you tell the Clark Corporation leadership?

Answer 1