1. Because high production-changeover time and costs, a director of manufacturin
ID: 1201243 • Letter: 1
Question
1. Because 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 hypothesis most appropriated for this study.
b. Comment on the conclusion when H0 cannot be rejected.
c. Comment on the conclusion when H0 can be rejected.
Explanation / Answer
Answer.
(a) Null Hypothesis - Ho= Mean cost = 220 and Alternative Hypothesis- Ha= Mean cost<220
(b) When H0 cannot be rejected means, We have to accept H0, The mean cost is = $220 and current method of production is better than a new one.
(c) When H0 can be rejected means, Accepting alternative hypothesis, which means new production method is cheaper than current one.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.