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A production supervisor at a major chemical company wishes to determine whether a new catalyst, catalyst XA-100, increases the mean hourly yield of a chemical process beyond the current mean hourly yield, which is known to be roughly equal to, but no more than, 750 pounds per hour. To test the new catalyst, five trial runs using catalyst XA-100 are made. The resulting yields for the trial runs (in pounds per hour) are 801, 814, 784, 836, and 820. Assuming that all factors affecting yields of the process have been held as constant as possible during the test runs, it is reasonable to regard the five yields obtained using the new catalyst as a random sample from the population of all possible yields that would be obtained by using the new catalyst. Furthermore, we will assume that this population is approximately normally distributed.
a. Using the Excel output in Figure 8.14, find a 95 percent confidence interval for the mean of all possible yields obtained using catalyst XA-100.
b. Based on the confidence interval, can we be 95 percent confident that the mean yield using catalyst XA-100 exceeds 750 pounds per hour? Explain.
Text Book: Business Statics in Practice By BOWERMAN.
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