Question

Question 4] Because of high production-changeover time and costs, a director of manufacturing must convince management that a proposed manufacturing method reduces costs before the new method can be implemented. The current production method operates with a mean cost of $220 per hour. A research study will measure the cost of the new method over a sample production period. a. Develop the null and alternative hypotheses most appropriate for this study. b. Comment on the conclusion when Ho cannot be rejected. C. Comment on the conclusion when Ho can be rejected.

Answer 1

Solution :- Given that Given proposed manufacturing method reduces Costs before the new method can be implemented. la) Null hypothesis: Ho=r=220 me thod reduces costs Alterantive Hypothesis Ho: F: 2 20 method reduces Costs Alterantive Hypothesis Hi: M2220 left til t test solution: since no level of significance given Chase alpha=0.05 Decision rule if p>0.05, Ho cannot be rejected solution: since no level of significance given choose alpha=0.05 if p<0.05, Ho Canbe niejected CS Scanned with CamScanner Thank you"