Answer to Question #53548 in Statistics and Probability for Bob

Question

Suppose a new production system will be implemented if a hypothesis test supports the conclusion that the new system increases production. Current system mean = 400

The appropriate null and alternative hypotheses in this case are?

a. Ho: µ ≥ 400 Ha: µ < 400
b. Ho: µ ≤ 400 Ha: µ > 400
c. Ho: µ = 400 Ha: µ ≠ 400
d. Ho: µ = 0 Ha: µ ≠ 0
e. Ho: µ ≠ 400 Ha: µ = 400

The new system was monitored for 40 hours and showed a mean production rate of 410 units per hour. Based on prior experience, a population standard deviation of 50 units can be used. Assume a .05 level of significance.

What is the critical value of the test statistic?

a. z = 1.96
b. t = 1.26
c. z = 1.26
d. t = 1.685
e. z = 1.64

What is the hypothesis test conclusion?

a. Do not reject Ho.
b. The test is inconclusive.
c. Reject Ho.
d. Reject Ho.
e. Do not reject Ho.

The calculated value of the test statistic is

a. z = 1.64.
b. z = 1.96.
c. t = 1.685.
d. t = 1.26.
e. z = 1.26.