Question

In: Statistics and Probability

A manufacturing firm has adopted a new layout for its production process, which is intended to...

A manufacturing firm has adopted a new layout for its production process, which is intended to increase worker productivity. With the old layout, mean daily output was 200 units. A manager wants to test the null hypothesis that with the new layout, mean daily output is no greater than 200, against the alternative hypothesis that it is greater than 200. Assume that daily output levels are approximately normally distributed, with standard deviation 18 units.

The manager decides they will take a random sample of 81 days of output, and that when implementing the rejection region approach, they will use a critical value of 203. Calculate the maximum probability of Type I error. Four decimals

Solutions

Expert Solution


Related Solutions

Research a firm that uses a process-oriented layout. Describe your selected firm's layout and discuss the...
Research a firm that uses a process-oriented layout. Describe your selected firm's layout and discuss the advantages and disadvantages of the layout. Recommend changes that would improve your selected firm's layout.
A company has adopted a lean production philosophy and, as a result, has cut its inventory...
A company has adopted a lean production philosophy and, as a result, has cut its inventory levels significantly. Describe the impact on the company’s external financial statements as a result of this inventory reduction. Also describe the impact of the inventory reduction on the company’s internal financial statements, which are prepared using variable costing.
Identify and describe three ways in which technology has transformed the production process in manufacturing during...
Identify and describe three ways in which technology has transformed the production process in manufacturing during the last several decades. Specifically, how have such technologies affected quality, efficiency, and the labor force?
A large-scale bakery is laying out a new production process for its packaged bread, which it...
A large-scale bakery is laying out a new production process for its packaged bread, which it sells to several grocery chains. It takes 12 minutes to bake the bread. How large of an oven is required so that the company is able to produce 4200 units of bread per hour (measured in the number of units that can be baked simultaneously)? Consider the baggage check-in process of a small airline. Check-in data indicate that from 9 a.m. to 10 a.m.,...
9. Development of new technology results in changes in the process and the layout. Comment on...
9. Development of new technology results in changes in the process and the layout. Comment on the above statement. Give examples if you can from your own observations.
A manufacturing company finds out that a new process that can decrease their production time. The...
A manufacturing company finds out that a new process that can decrease their production time. The company only has a limited fund for a process. A standard is set which at least 8% is acceptable for the processing time. 6 trials were undertaken showing a mean production time decrease of 8.4% with a standard deviation of 0.32%. Using a level of significance of (a) 0.01 and (b) 0.05, test the hypothesis that the process should be introduced. Use t-distribution.
15. ​If a Canadian manufacturing firm uses some imported inputs in the production process, the most...
15. ​If a Canadian manufacturing firm uses some imported inputs in the production process, the most accurate measure of the rate of protection is the a. ​specific tariff b. ​ad valorem tariff c. ​nominal tariff d. ​effective tariff 16. ​Assume that Mexico is a small country and it imposes a tariff on imported automobiles. As a result of the tariff a. ​the world price of automobiles falls b. ​the world price of autos remains constant c. ​the Mexican price of...
The figure above demonstrates a production process layout with eight machines. The table below shows their...
The figure above demonstrates a production process layout with eight machines. The table below shows their hourly productivity. A B C D E F G H 14 units/hr 14 units/hr 11 units/hr 13 units/hr 5 units/hr 12 units/hr 10 units/hr 10 units/hr How many units can this system produce in 874 hours if the productivity of machine B is increased to 19 units/hr? Please round your answer UP and do not use any units!
FunTime Inc., is an American toy manufacturing firm, with its headquarters in New York. The firm...
FunTime Inc., is an American toy manufacturing firm, with its headquarters in New York. The firm specializes in manufacturing educational toys for children. The table given below shows the educational toys market segment performance for FunTime Inc. Market Application Educational Toys Segment Performance (millions) Market Demand (units) 200 Market Share 25% Unit Volume 50 Average Net Price per Unit $10.00 Sales Revenues $500 Percent Margin 40% Gross Profit $200 Marketing & Sales Expenses (% sales) 25% Marketing & Sales Expenses...
A new paint process has been installed in a manufacturing facility. With this process, the facility...
A new paint process has been installed in a manufacturing facility. With this process, the facility has to wait only 58 minutes for drying before the next coat can be applied. That is, with the new process, the average dry time was 58 minutes and the standard deviation was 15.9 minutes for a sample of 30 automobiles. Compare this to the process that was replaced. This process (old process) was studied for 50 automobiles and the average dry time was...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT