Question

In: Statistics and Probability

The CEO of the company claims that the mean work day of the company’s mechanical engineers...

The CEO of the company claims that the mean work day of the company’s mechanical engineers is less than 8.5 hours. A random sample of 25 of the company’s mechanical engineers has a mean work of 8.2 hours. Assume the population standard deviation is 0.5 hour and the population is normally distributed. At ​​α​​​​ = 0.01, test the CEO’s claim.

  • State Ho and Ha and identify the claim.
  • State the tail of the hypothesis test.
  • State the level of significance.
  • State the critical value and explain why you chose a z or a t-test.
  • Complete the hypothesis test.
  • State your conclusion.
  • Discuss the possibility of a Type I or Type II error.

Solutions

Expert Solution

Here, we have to use one sample z test for the population mean.

The null and alternative hypotheses are given as below:

Null hypothesis: H0: the mean work day of the company’s mechanical engineers is 8.5 hours.

Alternative hypothesis: Ha: the mean work day of the company’s mechanical engineers is less than 8.5 hours.

H0: µ = 8.5 versus Ha: µ < 8.5

This is a two tailed test.

The test statistic formula is given as below:

Z = (Xbar - µ)/[σ/sqrt(n)]

From given data, we have

µ = 8.5

Xbar = 8.2

σ = 0.5

n = 25

α = 0.01

Critical value = -2.3263

(by using z-table or excel)

Z = (8.2 – 8.5)/[0.5/sqrt(25)]

Z = -3.0000

P-value = 0.0013

(by using Z-table)

P-value < α = 0.01

So, we reject the null hypothesis

There is sufficient evidence to conclude that the mean work day of the company’s mechanical engineers is less than 8.5 hours.


Related Solutions

The mean work week for engineers in a start-up company is believed to be about 60...
The mean work week for engineers in a start-up company is believed to be about 60 hours. A newly hired engineer hopes that it's shorter. She asks 10 engineering friends in start-ups for the lengths of their mean work weeks. Based on the results that follow, should she count on the mean work week to be shorter than 60 hours? Conduct a hypothesis test at the 5% level. Data (length of average work week): 70; 50; 60; 65; 65; 60;...
The average claims to an insurance company is 3 claims per day. a. Find what is...
The average claims to an insurance company is 3 claims per day. a. Find what is the probability that in a week there will be at least 5 days, 2 or 3 or 4 demands. b. Determine the probability that in a month, at least 15 days and at most 22 days, the number of demands this between 3 and 6 demands.
The officers and board of directors of the Philippine Society of Mechanical Engineers desires to award...
The officers and board of directors of the Philippine Society of Mechanical Engineers desires to award a P3,600.00, scholarship annually to deserving mechanical engineering students for as long as its scholarship fund shall last. The fund was started July l, 1987, by a donor in the amount of P18,000.00 The Philippine Society of Mechanical Engineers invested this sum at that time at 8% per annum and plans on adding P600.00 each year to the fund from its dues starting July...
Introduction Lori Patrick’s conversation earlier that day with Mike Lowe, the company’s CEO, kept running through...
Introduction Lori Patrick’s conversation earlier that day with Mike Lowe, the company’s CEO, kept running through Lori’s head during her 45-minute rush-hour commute home. “What a great opportunity Mike’s given me,” she thought. “The CEO of this organization believes in the value of HR and asked me to tell him how HR can help the company meet its strategic goals. When I was studying for my master’s in HR, we kept reading and talking about how HR needs to position...
an insurance adjuster processes the claims of sic policy holders in an 8 hour work day.
an insurance adjuster processes the claims of sic policy holders in an 8 hour work day. the adjuster uses $5 in gasoline and $3 in forms and office supplies to complete the work.1. What is the labor productivity (per labor hour)?2. What is the multifactor productivity?
You work for an international food and beverage company, and the CEO of the company wants...
You work for an international food and beverage company, and the CEO of the company wants to introduce a new product in the US market for 2021. Your team is charged with the following tasks: Develop a new food/beverage product concept that can be brought to market by 2021.  The product should have broad appeal for the US market (i.e., nothing illegal or distasteful). Present a five-year marketing plan to upper management that includes a description of the product, a plan...
In the midst of labor negotiations, the CEO of a company argues that the company’s blue-collar...
In the midst of labor negotiations, the CEO of a company argues that the company’s blue-collar workers, who are paid an average of $30,000 a year, are well paid because the mean annual income of all blue-collar workers in the country is less than $30,000. That figure is disputed by the union, which does not believe that the national mean blue-collar income is less than $30,000. An arbitrator draws a random sample of 150 blue-collar workers from across the country...
The average work week for engineers in a start-up company is believed to be about 60...
The average work week for engineers in a start-up company is believed to be about 60 hours. A newly hired engineer hopes that its shorter. She asks 10 engineering friends in start-ups for the lengths of their average work weeks. The average is 75 hours, with a standard deviation of 7.15 hours. Based on the data, test her claim that the average work week is shorter than 60 hours. Use α = 0.05
The average work week for engineers in a start-up company is believed to be about 60...
The average work week for engineers in a start-up company is believed to be about 60 hours. A newly hired engineer hopes that it's shorter. She asks 10 engineering friends in start-ups for the lengths of their average work weeks. Based on the results that follow, should she count on the average work week to be shorter than 60 hours? Conduct a hypothesis test at the 5% level. Data (length of average work week): 70; 45; 55; 60; 65; 60;...
A fast food company CEO claims that 19% of university students regularly eat at one of...
A fast food company CEO claims that 19% of university students regularly eat at one of their restaurants. A survey of 145 students showed that only 21 students regularly eat at one of their restaurants. Assuming the CEO's claim is correct, determine (to 4 decimal places): 1. the standard error for the sampling distribution of the proportion. 2. the probability that the sample proportion is no more than that found in the survey.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT