Give the null and the alternative hypotheses

Assignment Help Business Economics
Reference no: EM131101276

A producer of various kinds of batteries has been producing "D" size batteries with a life expectancy of 87 hours. Due to an improved production process, management believes that there has been an increase in the life expectancy of their "D" size batteries. A sample of 36 batteries showed an average life of 88.5 hours. Assume from past information that it is known that the standard deviation of the population is 9 hours.

a. Give the null and the alternative hypotheses.

b. Compute the test statistic.

c. At 99% confidence using the critical value approach, test management's belief.

d. What is the p-value associated with the sample results? What is your conclusion based on the p-value?

Reference no: EM131101276

Questions Cloud

Write mathematical expression of the consumption function : Consider the following economy: C=3,I=1.5,G =2.65,T=2,f=0.5,d = 0.1,mpc =0.8. Write the mathematical expression of the consumption function. Write the mathematical expression of the investment function. Find the IS curve and graph it.
The contract curve for this exchange economy : Exchange: Anna’s utility function is UA(x 1 A, x2 A) = x 1 A + 2p x 2 A, while Bailey’s utility function is UB(x 1 B, x2 B) = x 1 B + 4p x 2 B, where the superscript indicates the good and the subscript names the person. Anna’s initial endowment of g..
What is the exchange rate compatible : The price of a commodity in New Zealand is NZD10, whereas the price of the same commodity in Australia is AUD6. The current exchange rate (NZD/AUD) is 1.15. (a) Is there violation of LOP? (b) If so, what will happen? (c) What is the Australian dollar..
Determine how many permits to issue : Horsehead, Massachusetts lies on a bay inhabited by lobsters. The town council issues permits for trapping lobsters and is trying to determine how many permits to issue. Assume that is costs $2,000 to operate a lobster boat and that if there are x bo..
Give the null and the alternative hypotheses : A producer of various kinds of batteries has been producing "D" size batteries with a life expectancy of 87 hours. Due to an improved production process, management believes that there has been an increase in the life expectancy of their "D" size bat..
Compute the standard error and test statistic : The average gasoline price of one of the major oil companies in Europe has been $1.25 per liter. Recently, the company has undertaken several efficiency measures in order to reduce prices. Management is interested in determining whether their efficie..
What are the consequences of making this error : Suppose a new production method will be implemented if a hypothesis test supports the conclusion that the new method reduces the mean operating cost per hour. state the appropriate null and alternative hypotheses if the mean cost for the current prod..
Because high production-changeover time and costs : 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. A research study will measure the cost of the new met..
Law and economics-consider the model of land assembly : Consider the model of land assembly (under the topic Eminent Domain). Specifically, assume that a buyer want to buy two contiguous properties owned by two different owners. You can assume that the properties are identical in all respects. There two p..

Reviews

Write a Review

Business Economics Questions & Answers

  Qjohnny works for the great big cookie company gbc which

q.johnny works for the great big cookie company gbc which buys labor at a wage of 1 an hour and uses it to produce

  Question regarding the middle-class squeeze

1. What is the "middle-class squeeze"? 2. How do low unemployment rates mask the economic challenges people face in maintaining middle-class status?

  Production at the minimum ecient scale in the long run

A market with barriers to entry may not be characterized by production at the minimum ecient scale in the long run. The Diamond-Mortensen-Pissarides model successfully explains the phenomenon of unemployment, while competitive market models ( earlier..

  Movement along demand curve and shift in demand curve

How did Adam Smith justify the new economic system which was later to be called capitalism? Explain the difference between a movement along a demand curve and a shift in the demand curve. Briefly explain and graphically present four factors that can ..

  Output rate to maximize its profits

If each of the firms sets its own output rate to maximize its profits, assuming that the other firm holds its rate of output constant.

  Market for soccer balls are selling in competitive market

In the market for soccer balls are selling in a purely competitive market. A firm in the soccer ball market has an output of 5,000 balls, which it sells for $10 each. At the output level of 5,000 the average variable cost is $6.00, the average total ..

  What fiscal policies and monetary policies

What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?

  Average total cost curves for the average retail outlet

Wal-Mart is a giant among retail outlets and accounts for major fractions of toy, grocery, and clothing sales in the U.S. and Canada. Wal-Mart's success is partly due to increases in productivity through many innovations in their operation. Now on an..

  Economy operating relative

Explain where is the economy operating relative to its potential GDP

  Demand and supply curves and on equilibrium price-quantity

Surveys indicate that Americans are becoming more and more dependent on over the counter medications such as Advil. For each of the following two scenarios, illustrate and describe the effect on both the demand and supply curves and on equilibrium pr..

  Concept of capabilities to function

How does the concept of capabilities to function' help us gain insight into development goals and achievement? Explain its contribution in measuring level of development.

  When the monopolist serves both markets

Suppose that there are two markets, given by the following demand curves, q1(p1) and q2(p2); and a monopolist with cost function c(q1, q2). Solve for the first-order conditions to characterize the optimal solution when the monopolist serves both mark..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd