Question

In: Statistics and Probability

A company that produces carbonated beverage has to check the shelf life of their product periodically...

A company that produces carbonated beverage has to check the shelf life of their product periodically for quality control. They collected a random sample of 10 bottles and measured their shelf life in days, and obtained the following results:

108, 124, 124, 106, 115, 138, 163, 159, 134, 139

They would like to demonstrate that the mean shelf life of their product exceeds 120 days.

Set up the appropriate hypotheses. Use mathematical notation, and explain the symbols that you are using.

Show the formula for the test statistic and compute its value.

What is distribution of the test statistic under the null hypothesis?

Using a=0.01, what is your conclusion?

Compute the p-value.

What are the assumptions that you made in order to perform this analysis? Conduct the appropriate steps in order to check if the assumptions hold in this case. If not, suggest what you would do.

Solutions

Expert Solution

Let denotes the mean shelf life of their product.

To test against

Here

sample mean

sample standard deviation

and sample size

The test statistic can be written as

which under H0 follows a t distribution with n-1 df.

We reject H0 at 1% level of significance if P-value < 0.01

The value of the test statistic

and P-value

  

Since  , so we fail to reject H0 at 1% level of significance and we can conclude that the mean shelf life of their product is not significantly greater than 120

The assumptions that one will make  in order to perform this analysis : the shelf life of the products follow a normal distribution.


Related Solutions

The company has two machines which are used to fill bottles with the carbonated beverage. The...
The company has two machines which are used to fill bottles with the carbonated beverage. The actual amount filled in each bottle is assumed to have a normal distribution. For Machine 1, the standard deviation is known to be s1=0.015 and for Machine 2 it is known to be s2=0.018. The quality control department wants to check if the two machines fill the same net volume on average. They randomly collect 10 bottles which were filled by Machine 1, and...
Problem 2.22 (modified from Montgomery, 9th edition) The mean shelf life of a carbonated drink should...
Problem 2.22 (modified from Montgomery, 9th edition) The mean shelf life of a carbonated drink should exceed 120 days. Ten bottles are randomly selected and tested, and the results below are obtained: shelf life (days) = {108, 124, 124, 106, 115, 138, 163, 159, 134, 139} a) Clearly state the hypothesis to be tested, first in English and then in mathematical expressions for H0 and H1. b) Test the hypothesis at significance level 0.01. Report both the p-value and a...
A company wants to determine if the median shelf life for their product is different from...
A company wants to determine if the median shelf life for their product is different from the median shelf life of their main competitor’s product. Their main competitor’s product has a median shelf life of 10 days. Since the product is very expensive, the company only wants to devote a small number of units to the associated test. They test 7 units of product and find the following results. Unit 1 2 3 4 5 6 7 Shelf Life (days)...
2. [12 marks] A company wants to determine if the median shelf life for their product...
2. [12 marks] A company wants to determine if the median shelf life for their product is different from the median shelf life of their main competitor’s product. Their main competitor’s product has a median shelf life of 10 days. Since the product is very expensive, the company only wants to devote a small number of units to the associated test. They test 7 units of product and find the following results. Unit 1 2 3 4 5 6 7...
The shelf life of a battery produced by one major company is known to be normally...
The shelf life of a battery produced by one major company is known to be normally distributed, with a mean life of 3.2 years and a standard deviation of 0.5 years. Using the expanded empirical rule, what is the probability in decimal form that a randomly chosen battery will (a) last fewer than 3.535 years? Answer: (b) last between 2.7 and 3.7 years? Answer: (c) last more than 1.7 years? Answer:
Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual...
Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,200 cases. A case of the soft drink costs R&B $4. Ordering costs are $23 per order and holding costs are 21% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy: Economic order quantity. If required, round your answer to two decimal...
Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual...
Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3650 cases. A case of the soft drink costs R&B $4. Ordering costs are $25 per order and holding costs are 26% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy: Economic order quantity. If required, round your answer to two decimal...
The liquid chlorine added to swimming pools to combat algae has a relatively short shelf life...
The liquid chlorine added to swimming pools to combat algae has a relatively short shelf life before it losesits effectiveness. Records indicate that the mean shelf life of a jug of chlorine is 2180 hours. An experiment was conducted in which an additive, 'Holdlonger' was added to the jugs of chlorine in an attempt to increase its shelf life. The following data represent the shelf life (in hours) of nine jugs of chlorine with the Holdlonger added: 2172 2153 2157...
Problem 14-1 (Algorithmic) Suppose that the R&B Beverage Company has a soft drink product that shows...
Problem 14-1 (Algorithmic) Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3000 cases. A case of the soft drink costs R&B $3. Ordering costs are $19 per order and holding costs are 27% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy: a.Economic order quantity. If required, round your answer...
The new Fresh-Cola product by Fresh-Cola Inc., a manufacturer of carbonated drinks, has just been introduced....
The new Fresh-Cola product by Fresh-Cola Inc., a manufacturer of carbonated drinks, has just been introduced. What patterns develop during this phase of the product life cycle?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT