Question

In: Statistics and Probability

The Ajax Company just bought a new machine that makes boots. In a random sample of...

The Ajax Company just bought a new machine that makes boots. In a random sample of forty boots produced by the new machine, they find that the mean weight is 1550 grams with a standard deviation of 210 grams. Their old machine produced boots with a true mean weight of 1450 grams. (Answer all 4 parts)

Find a 95% confidence interval for the true mean weight using the new machine. Interpret the confidence interval in context.

Find the error bound of the above interval.

Is there evidence that the true mean weight for the new machine is different than that of the old machine? Justify!

Solutions

Expert Solution

orchestra answered 2 years ago
Next > < Previous

Related Solutions

The Acme Company just bought a new machine that makes markers. In a random sample of...
The Acme Company just bought a new machine that makes markers. In a random sample of 250 markers from the new machine, they find that 234 markers work. Find the error bound for a 95% confidence interval for the true proportion of working markers from the new machine. Find the required sample size for calculating a 95% confidence interval for a population mean  with a standard deviation of 26.2 and an error bound of 9. Find the required sample size for...
The Acme Company just bought a new machine that makes markers. In a random sample of...
The Acme Company just bought a new machine that makes markers. In a random sample of 250 markers from the new machine, they find that 235 markers work. They want to test if the true proportion of working markers from the new machine is greater than 90%. Assuming that they use the approximate methodology, find the p-value of the test. The Acme Company just bought a new machine that makes markers. In a random sample of 250 markers from the...
Q1 Eb's Eggs just bought a new egg sorting machine for $124201. The machine will save...
Q1 Eb's Eggs just bought a new egg sorting machine for $124201. The machine will save $33343 in year 1, $30661 in year 2, $15526 in year 3, and $7650 per year from year 4 until the machine is salvaged at the end of year 11. At the end of year 11 it will have a salvage value of $2001. Eb uses a MARR of 8% to make decisions. What is the payback period (PBP) for this machine? Enter your...
Eb's Eggs just bought a new egg sorting machine for $109,569. The machine will save $32,567...
Eb's Eggs just bought a new egg sorting machine for $109,569. The machine will save $32,567 in year 1, $31,888 in year 2, $15,041 in year 3, and $9,316 per year from year 4 until the machine is salvaged at the end of year 11. At the end of year 11 it will have a salvage value of $2,409. Eb uses a MARR of 9% to make decisions. What is the payback period (PBP) for this machine?
X Company is unhappy with a machine that they bought just a year ago for $43,000....
X Company is unhappy with a machine that they bought just a year ago for $43,000. It is considering replacing it with a new machine that will save significant operating costs. Operating costs with the current machine are $68,000 per year; operating costs with the new machine are expected to be $46,000 per year. Both machines will last for 5 more years.The current machine can be sold immediately for $7,000 but will have no salvage value at the end of...
A company bought a new machine fot $300,000. The new machine generated revenue for $90,000 per...
A company bought a new machine fot $300,000. The new machine generated revenue for $90,000 per year. Operating cost of that machine is $10,000 per year. The machine is depreciated according to 7-years MACRS method. The machine is sold for $80,000 in the middle of 6th year of service. Determine the after tax net present worth. Assume, the after-tax MARR is 10% and income tax rate is 25% (federal and state combined).
AJAX Corporation is considering replacing their old machine with a new one. The old machine has...
AJAX Corporation is considering replacing their old machine with a new one. The old machine has 5 years of remaining life. The old machine has depreciation expenses of $500 per year for the remaining life. It can be sold for $4000 right now. If kept, it has no salvage value at the end of its life. The new machine which has a 5-year life costs $10,000 to purchase. The new machine falls into the MACRS 5-year class with the appreciation...
AJAX Corporation is considering replacing their old machine with a new one. The old machine has...
AJAX Corporation is considering replacing their old machine with a new one. The old machine has 5 years of remaining life. The old machine has depreciation expenses of $500 per year for the remaining life. It can be sold for $4000 right now. If kept, it has no salvage value at the end of its life. The new machine which has a 5-year life costs $10,000 to purchase. The new machine falls into the MACRS 5-year class with the appreciation...
Ajax Company bought equipment for $2,500. The company estimates that the equipment’s period of useful life...
Ajax Company bought equipment for $2,500. The company estimates that the equipment’s period of useful life will be 5 years. After 5 years the residual value is $500. Calculate depreciation expense and complete a depreciation schedule
The ABC Company bought a new machine on October 1, 2014 for $110,000. It planned to...
The ABC Company bought a new machine on October 1, 2014 for $110,000. It planned to keep the truck for four years at which time it expected to sell the truck for $30,000. The company elected to amortize the truck for financial reporting purposes using the declining balance method with an annual rate of 30%. The company has a December 31 year-end and a corporate income tax rate of 40%. For tax reporting purposes, you may pick one of the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT