Question

In: Statistics and Probability

1. a) A fishery sent a shipment with several boxes of salmon to a large seafood...

1. a) A fishery sent a shipment with several boxes of salmon to a large seafood restaurant. The restaurant’s quality manager inspected one randomly selected box containing 16 salmon. Summary statistics for the weight (in lbs) of the salmon in the inspected box are given below.

Mean 5.1

Median 5.1

Lower quartile 4.5

Upper quartile 6.1

Standard deviation 1.4

Min 3.2

Max 8.1

i. Compute the lower fence (lower bound) for determining outliers using the IQR Rule. Round to 2 decimal places.

ii. According to the IQR Rule, the salmon with the lowest weight in the box is an outlier. True False (circle your choice)

iii. Choose the most appropriate statistic to measure the spread of this distribution and interpret its value in the context of the question.

b) The restaurant will reject the entire shipment if the average weight of the salmon is under 6 lbs. Test this claim using the sample of salmon in the inspected box. Assume the standard deviation of entire shipment is 1.6 lbs.

i. Let µ represent the parameter of interest in this study. Define µ.

ii. The null hypothesis is H0: _________ lbs.

iii. The alternative hypothesis is Ha: __________ lbs.

iv. Compute the test statistic. Round to 2 decimal places.

v. Compute the p-value. Round to 4 decimal places.

vi. Make an appropriate conclusion using a 5% significance level. vii. Based on your conclusion from the significance test, the restaurant should reject the shipment and send it back to the fishery. True False (circle your choice)

viii. Did you make any assumptions for this significance test that were not already stated in the question?

Solutions

Expert Solution


Related Solutions

A shipment of cereal boxes is delivered to a supermarket. The manager is told that the...
A shipment of cereal boxes is delivered to a supermarket. The manager is told that the weights of the cereal boxes are normally distributed, with a mean of 165 g and a standard deviation of 5 g. A. Find the probability that the random sample of 200 boxes has a mean weight of between 164.9 and 165.1. B. Do I need to state that the distribution of the weights of the cereal boxes is normal in order to do part...
1. A retailer decides that he will reject a large shipment of light bulbs if there...
1. A retailer decides that he will reject a large shipment of light bulbs if there is more than one defective bulb in a sample of size 10. If the defective rate is 0.10, what is the probability that the retailer will reject the shipment? 2. Find the value of a in the following discrete probability distribution: x P(x) -2 a 0 0.35 2 0.25
The Levy Box plant produces wooden packing boxes to be used in the local seafood industry....
The Levy Box plant produces wooden packing boxes to be used in the local seafood industry. Current operations allow the company to make 600 boxes per day, in two 8-hour shifts (300 boxes per shift). The company has introduced some moderate changes in equipment, and conducted appropriate job training, so that production levels have risen to 400 boxes per shift. Labor costs average $13 per hour for each of the 5 full-time workers on each shift. Capital costs were previously...
Alyeska Salmon Inc., a large salmon canning firm operating out of Valdez, Alaska, has a new...
Alyeska Salmon Inc., a large salmon canning firm operating out of Valdez, Alaska, has a new automated production line project it is considering.  The project has a cost of $231,862 and is expected to provide after-tax annual cash flows of $64,958   for five years.  The firm’s management is uncomfortable with the IRR reinvestment assumption and prefers the modified IRR approach.  You have calculated a cost of capital for the firm of 11.4 percent.  What is the project’s MIRR?
Alyeska Salmon Inc., a large salmon canning firm operating out of Valdez, Alaska, has a new...
Alyeska Salmon Inc., a large salmon canning firm operating out of Valdez, Alaska, has a new automated production line project it is considering. The project has a cost of $300,000 and is expected to provide after-tax annual cash flows of $80,000 for seven years. The cost of capital for the firm is 15 percent. What is the payback period of the project? 3.33 years 3.75 years 4.25 years 4.82 years 5.33 years 1 points    What is the NPV of...
Question 1 Coombes is a U.S.-based IT company. In September Coombes delivers a large shipment of...
Question 1 Coombes is a U.S.-based IT company. In September Coombes delivers a large shipment of computer equipment to a major distributor in Seville. The receivable, €10 million, is due in 90 days, standard terms for the IT industry in Europe. Note that the sale is large relative to Coombes’s other business and that they currently have no other foreign customers. Required: Evaluate the arguments for and against hedging. Consider this from both the company’s and the shareholder’s viewpoint. Recommend...
Q 1 Healthy Foods Company (HFC) currently processes seafood with a unit it purchased several years...
Q 1 Healthy Foods Company (HFC) currently processes seafood with a unit it purchased several years ago. The unit, which originally cost $500,000, has a current book value of $250,000. HFC is considering replacing the existing unit with a newer, more efficient one. The new unit will cost $750,000 and will also require an initial increase in net working capital of $40,000. The new unit will be depreciated on a straight‐line basis over five years to a zero balance. The...
Suppose that the proportion θ of defective items in a large shipment is unknown, and that...
Suppose that the proportion θ of defective items in a large shipment is unknown, and that the prior distribution of θ is a beta distribution for which the parameters are α = 2 and β = 200. If 100 items are selected at random from the shipment and if three of these items are found to be defective, what is the posterior distribution of θ?
An inspection by a quality officer found that in a large shipment of electronic parts, 0.025...
An inspection by a quality officer found that in a large shipment of electronic parts, 0.025 are bad. The parts are tested using a machine that correctly identifies bad parts as defective with a probability of 0.96 and correctly identifies good parts as non-defective with a probability of 0.92. (a) If a part is randomly sampled from the shipment and tested, calculate the probability that the testing machine identifies the part as defective. (b) Given that the test indicates a...
An inspector inspects large truckloads of potatoes to determine the proportion p in the shipment with...
An inspector inspects large truckloads of potatoes to determine the proportion p in the shipment with major defects prior to using the potatoes to make potato chips. Unless there is clear evidence that this proportion, p, is less than 0.10, he will reject the shipment. He will test the hypotheses H 0 : p = 0.10 , H a : p < 0.10 . He selects an SRS of 100 potatoes from the over 2000 potatoes on the truck. Suppose...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT