jamestown steel company manufactures and assembles desks and other office equipment. The weekly production of the...

jamestown steel company manufactures and assembles desks and other office equipment. The weekly production of the model A325 desk at the Fredonia Plant follows the normal probability distribution with a mean of 200 and a standard deviation of 16. Recently, new production methods have been introduced and new employees hired. The VP of manufacturing would like to investigate whether there has been a change in the weekly production of the Model A325 desk. A sample from last year's weekly production yielded a mean number of desks produced of 203.5.For a 0.01 significance level, what is the critical value?

a. 2.576

b. 2.326

c. 1.96

d. 1.645

Expert Solution

Solution:
Given in the question
The VP of manufacturing would like to investigate whether there has been a change from 200 in the weekly production of the Model A325 desk so null hypothesis and alternate hypothesis can be written as
Null hypothesis H0: = 200
Alternate hypothesis Ha: 200
Sample mean = 203.5
Population standard deviation = 16
Here we will use standard normal distribution and this is two-tailed tests
at alpha or level of significance = 0.01
alpha/2 = 0.005 for lower tailed, from Z table we found Z-critical value = -2.576
alpha/2 = 0.995 for upper tailed, from Z table we found Z-critical value = +2.576
So its correct answer is A. i.e. 2.576

orchestra answered 2 years ago

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