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 H0 cannot be rejected.
C.     Comment on the conclusion when H0 can be rejected.
A. Develop the null and alternative hypotheses that are most appropriate for the study. The null hypothesis is that, regardless of other factors, the average cost of production will be $ 220 per hour. An alternative hypothesis is that as a result of applying the method, costs will be reduced.
B. Comment on the conclusion if H0 cannot be rejected. If, with the introduction of new methods, a disproportional change in the tsun for resources occurs, this will lead to the initial average cost of production per hour.
C. Comment on the conclusion when H0 can be rejected. In the event that a structural change occurs in the market for these creatures, this hypothesis may be rejected.
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