Allied Corporation is trying to determine whether to purchase Machine A or B. It

Question

Allied Corporation is trying to determine whether to purchase Machine A or B. It has leased the two machines for a month. A random sample of 5 employees has been taken. These employees have gone through a training session on both machines. Below you are given information on their productivity rate on both machines. (Let the difference d = Machine A - Machine B.)

Productivity Rate
Person Machine A Machine B
1 47 52
2 53 58
3 50 47
4 55 60
5 45 53

a. State the null and alternative hypotheses for a two-tailed test.
b. Find the mean and standard deviation for the difference.
c. Compute the test statistic.
d. Test the null hypothesis stated in Part a at the 10% level.

Explanation / Answer

a. H0: ?d = 0 Ha: ?d ? 0 b. -4 and 4.123 c. t = -2.169 d. p-value is between 0.05 to .10, reject H0

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