Question

In: Statistics and Probability

A company is engaged in the production of feed for farm birds. The company's marketing department...

A company is engaged in the production of feed for farm birds. The company's marketing department has released an advertisement that ensures that the birds that are fed with this product will have a weight gain of at least 130 grams during its first week. The weight gain of these birds is known to follow a normal distribution with variance of 120g2. Given the complaint of fraudulent advertising, filed by some buyers, the Consumer Defender launched an investigation. A sample consisting of 50 birds was used, which was fed with this concentrate during its first week and an average increase of 110 g was recorded.

a) Determine the critical value or values for this hypothesis test (in which the assertion made in the advertisement is statistically analyzed). Use a significance level of 4%.

b) Determine the regions of acceptance and rejection of the hypothesis (statement made in the announcement), using a significance level of 4%.

c) Based on statistical evidence, explain whether the advertisement can be considered fraudulent advertising. Use a confidence level of 96%. All the procedures and calculations that support the conclusion must be presented.

d) Determine the minimum sample size necessary to perform the hypothesis test with a significance level of 2.5% and a power of 91%, if the average weight gain is actually 125 grams.

Solutions

Expert Solution

a)

(b)

c)

d)

The standard deviation is

---------------------------

-------------------------------------------------------------------------------------------------------------

orchestra answered 1 year ago
Next > < Previous

Related Solutions

Business Case: The Managerial Accounting Department at your company has been engaged by the Production Department...
Business Case: The Managerial Accounting Department at your company has been engaged by the Production Department for assistance in evaluating a purchase decision. The equipment the production department is currently utilizing is outdated and has become costly to maintain. New machines would also provide increased efficiencies leading to increased sales. Due to this, the department is considering replacing all equipment with new machines. Data: - Cost of Current Machines: $800,000 - Cost of New Machines: $1,250,000 - Annual Maintenance on...
Business Case: The Managerial Accounting Department at your company has been engaged by the Production Department...
Business Case: The Managerial Accounting Department at your company has been engaged by the Production Department for assistance in evaluating a purchase decision. The equipment the production department is currently utilizing is outdated and has become costly to maintain. New machines would also provide increased efficiencies leading to increased sales. Due to this, the department is considering replacing all equipment with new machines. Data: - Cost of Current Machines: $800,000 - Cost of New Machines: $1,250,000 - Annual Maintenance on...
Question 5: Marketing is a specialist activity just as is production in the farm business. Marketing...
Question 5: Marketing is a specialist activity just as is production in the farm business. Marketing requires the investment of resources for labour, capital and management. Explain why activities in marketing should be appraised the same as any other investment in a farm business.
The marketing department has proposed selling your company's product line in a new export market. Production...
The marketing department has proposed selling your company's product line in a new export market. Production equipment (Class 43) with a CCA rate of 30% costing $100,000 will be needed, as will installation and training estimated at $10,000 each. These costs will all occur at time 0. Project cash flows before tax are forecast to be $40,000 per year over the 4-year project life. An initial investment in net working capital of $4,000 will be needed, and each year net...
The marketing department has proposed selling your company's product line in a new export market. Production...
The marketing department has proposed selling your company's product line in a new export market. Production equipment (Class 43) with a CCA rate of 30% costing $100,000 will be needed, as will installation and training estimated at $10,000 each. These costs will all occur at time 0. Project cash flows before tax are forecast to be $40,000 per year over the 4-year project life. An initial investment in net working capital of $4,000 will be needed, and each year net...
Required: (a) Adams Company's production cycle starts in Department A. The following information is available for...
Required: (a) Adams Company's production cycle starts in Department A. The following information is available for July: Units Work in process, July 1 (50% complete) 71,000 Started in July 370,000 Work in process, July 31 (30% complete) 43,000 Materials are added at the beginning of the process in Department A. Using the weighted-average method, what are the equivalent units of production for materials and conversion costs for the month of July, respectively? A.441,000; 410,900 B.370,000; 382,900 C.398,000; 370,000 D.441,000; 398,000...
A feed manufacturing company is faced with a capacity decision.  Their present production facility is running at...
A feed manufacturing company is faced with a capacity decision.  Their present production facility is running at nearly maximum capacity.  Management is considering the following three decision alternatives: No expansion Add on the present facility Build a new facility What option would be recommended under the optimistic approach? What option would be recommended under the conservative approach? What option would be recommended under the opportunity (minimax) regret approach? PLEASE EXPLAIN WHAT THESE TERMS MEAN WHEN SOLVING THE QUESTION State of demand Option:...
Your client Corp A is a company engaged in the production of heavy equipment and markets...
Your client Corp A is a company engaged in the production of heavy equipment and markets its products on a business to business (B2B) basis. Goods produced by Corp A are heavy equipment such as: Excavators, Bulldozers, Mobile Cranes, Motor Scrapers, etc. There are also a number of finished products in the form of heavy equipment which are self-used by Corp A. After several years of self-use, that heavy equipment is sold, which is in the fiscal year that you...
Problem 1 A farm has been experimenting with a special diet for its horses. The feed...
Problem 1 A farm has been experimenting with a special diet for its horses. The feed components for the diet are a standard feed product, a vitamin-enriched oat product, and a new vitamin and mineral feed additive (detail below). The minimum daily diet requirements for each horse are 3 units of ingredient A, 6 units of ingredient B, and 4 units of ingredient C. In addition, to control the weight of the horses, the total daily feed for a horse...
The RV company, engaged in the fabrication of automobile engine part with production capacity of 700,000...
The RV company, engaged in the fabrication of automobile engine part with production capacity of 700,000 units per year, is only operating at 65% capacity due to unavailability of the necessary foreign currency to finance the importation of their raw materials. The current annual income is P450,000; annual fixed costs are P190,000 and variable cost are P0.35 per unit. A) What is the current profit/loss? B) What is the breakeven point in units and in pesos? C) Draw the breakeven...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT