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Two teams of workers assemble aircraft navigational systems at a manufacturing plant in Washington. Team 2 uses a new costly manufacturing system that management is considering for the entire operation. A random sample of 150 assemblies from team 1 shows 21 unacceptable assemblies. A similar random sample of 125 assemblies from team 2 shows 12 unacceptable assemblies.
(A) Is there sufficient evidence to conclude, at the 10% significance level, that the new manufacturing system reduces the number of unacceptable assemblies? Conduct the appropriate hypothesis test.
(B) Is there sufficient evidence to conclude, at the 5% significance level, that the new manufacturing system reduces the number of unacceptable assemblies? Conduct the appropriate hypothesis test.
(C) Calculate the p-value and explain how to use it for testing the null hypothesis.
(D) Would you recommend that the firm invest in the new system?
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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