Perform an appropriate hypothesis test for engineering firm

Reference no: EM13151347

An engineering firm is evaluating their back charges. They originally believed their average back charge was $1800. They are concerned that the true average is higher, which could hurt their quarterly earnings. They randomly select 40 customers, and calculate the corresponding sample mean back charge to be $1950. If the standard deviation of back charges is $500, and alpha = 0.04, should the engineering firm be concerned? Perform an appropriate hypothesis test, showing the necessary calculations and/or explaining the process used to obtain the results.

Reference no: EM13151347

Questions Cloud

Establishing the standard hours allowed for output of unit : To measure controllable production inefficiencies, which of the following is the best basis for a company to use in establishing the standard hours allowed for the output of one unit of product?

How many liters of h2 at 23.0c and 733mm hg are released : How many liters of H2 at 23.0C and 733mm Hg are released when 1.98g of Na reacts with unlimited water?

Year end retained earnings balance : Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $5,000. Compute the year end retained earnings balance

Explain what economists means by concept of market failure : Which is more likely to return the European economy to long term growth, austerity (reducing public debt) or deficit finance (increasing public debt)? Use economic models to analyse this question.

Perform an appropriate hypothesis test for engineering firm : Should the engineering firm be concerned? Perform an appropriate hypothesis test, showing the necessary calculations and/or explaining the process used to obtain the results.

How many grams of dry nh4cl need to be added : How many grams of dry NH4Cl need to be added to 2.50 L of a 0.800 M solution of ammonia, NH3, to prepare a buffer solution that has a pH of 8.74? Kb for ammonia is 1.8*10^-5.

A large inventory of automobiles at an auto manufacturing co : 1. A large inventory of automobiles at an auto manufacturing company ( what constitutes good evidence for net realizable value and classification). 2. Available for Sale Security Investment-( what constitutes net realizable value and classification)

Include in his gross income : Rick knew that this deal was too good to be true and so he took advantage of the offer before the station owner realized what a giveaway this was. How much should Mr. Z. include in his gross income? Explain your reasoning.

What is expected payoff to at&ts decision : If the probability of Verizon not advertising even though AT&T does not is 10 percent, what is expected payoff to AT&Ts decision to not to advertise?

User Account

All Pages