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Zip Inc. manufactures Zip drives on two different manufacturing processes. Because the management of this company is interested in determining if process 1 takes less manufacturing time, they selected independent samples from each process. The results of the samples are shown below.
Process1 Process2Sample Size 27 22Sample Mean(minute) 10 14Sample Variance 16 25
At 0.05 level of significance,
(a). State the null and alternative hypotheses.(b). Determine the degree of freedom for the test.(c). Compute the test statistic.(d). Calculate the p-value of the test statistic and discuss whether there is sufficient evidence to indicate that process 1 takes a statistically significant shorter time to manufacture the drives.
Cost assigned to beginning work in process: Direct materials 30,000; conversion costs 5,000. Manufacturing costs incurred during April: direct materials 25,000; conversion costs, $65,000. Using the weighted average method.
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