Downtime in virtually any business can be costly. In amanufacturing setting, it

Question

Downtime in virtually any business can be costly. In amanufacturing setting, it means less product produced in a giventime period while still having to “pay the bills.” Theresult of which might mean late deliveries, backlogs, failure tomeet orders, and even loss of market share. Suppose a manufacturingplant has been averaging 23 minutes of downtime per day for thepast several years, but during the past year, there has been asignificant effort by both management and production workers toreduce downtime. In an effort to determine if downtime has beensignificantly reduced, company productivity researchers haverandomly sampled 16 days over the past several months from companyrecords and have recorded the daily downtimes shown belowinminutes. Use these data and an alpha of .10 to test to determineif downtime has been significantly reduced. Assume that dailydowntimes are normally distributed in the population.

17, 22, 10, 19, 32, 24, 16, 9, 22, 17, 18, 5, 23, 19, 28, 15

The value of the test statistic rounded to 2 decimal placesis     t =

and do we reject the null hypothesis? Or do we fail to rejectthe null hypothesis?

The tolerance is +/- 0.05.

Explanation / Answer

H0: =23 H1:

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