Question

In: Statistics and Probability

Textile manufacturer, Joywill International, is trying to decide which vendor they should source for a yarn...

Textile manufacturer, Joywill International, is trying to decide which vendor they should source for a yarn needed in one of their products. Vendor A has a lower price than Vendor B but the determining factor must be the mean breaking strength of the yarn.

Random samples were drawn from the vendors’ supply, with results shown below:

Vendor A

Vendor B

Sample size

10

12

Sample mean

105

98

Sample variance

8

9

Do these data provide sufficient evidence that the mean yarn strength for Vendor A is the more than the mean yarn strength for Vendor B.

Perform the appropriate hypothesis test using a significance level of 0.05.

Do your work in an Excel file. Make Excel do the test statistic calculation.!!!!!!

Solutions

Expert Solution

using excel

we have

Pooled-Variance t Test for the Difference Between Two Means
(assumes equal population variances)
Data
Hypothesized Difference 0
Level of Significance 0.05
Vendor A
Sample Size 10
Sample Mean 105
Sample Standard Deviation 2.828427
Vendor B
Sample Size 12
Sample Mean 98
Sample Standard Deviation 3 Formula used
Intermediate Calculations
Population 1 Sample Degrees of Freedom 9 B7-1
Population 2 Sample Degrees of Freedom 11 B11-1
Total Degrees of Freedom 20 B16+B17
Pooled Variance 8.5500 ((B16*B9^2)+(B17*B13^2))/B18
Standard Error 1.2520 SQRT(B19*(1/B7+1/B11))
Difference in Sample Means 7.0000 B8-B12
t Test Statistic 5.5911 (B21-B4)/B20
Upper-Tail Test
Upper Critical Value 1.7247 (TINV(2*B5,B18))
p-Value 0.0000 TDIST(ABS(B22),B18,1)
Reject the null hypothesis

since p-value of test statistic t is 0.000 which is less than 0.05 so we will not reject Ho and conclude that we have sufficient evidence that the mean yarn strength for Vendor A is the more than the mean yarn strength for Vendor B.


Related Solutions

A textile fiber manufacturer is investigating a new drapery yarn, which the company claims have a...
A textile fiber manufacturer is investigating a new drapery yarn, which the company claims have a mean thread elongation of 24 kilograms with a standard deviation of 0.5 kilograms. The company wishes to test the hypothesis using a random sample of 4 specimens. H0: μ =24 against H1: μ<24 (a) What is the type I error probability if the critical region is defined as kilograms? What will be the value of X̄ ? explain why X̄ is such.
A textile fiber manufacturer is investigating a new drapery yarn, which the company claims have a...
A textile fiber manufacturer is investigating a new drapery yarn, which the company claims have a mean thread elongation of 24 kilograms with a standard deviation of 0.5 kilograms. The company wishes to test the hypothesis using a random sample of 4 specimens. H0: μ =24 against H1: μ<24 (a) What is the type I error probability if the critical region is defined as kilograms? What will be the value of X̄ ? explain why X̄ is such.
A textile fiber manufacturer is investigating a new drapery yarn, which the company claims has a...
A textile fiber manufacturer is investigating a new drapery yarn, which the company claims has a mean thread elongation of 15 kilograms with a standard deviation of 0.5 kilograms. The company wishes to test the hypothesis H_0: mu = 15 against H_1: mu > 15 using a random sample of 4 specimens. Suppose also that the critical region (rejection region) is defined as (sample mean) X_bar > 15.41 kilograms. Calculate the beta value for the case where the true mean...
13. A textile fiber manufacturer is investigating a new drapery yarn, which the company claims have...
13. A textile fiber manufacturer is investigating a new drapery yarn, which the company claims have a mean thread elongation of 24 kilograms with a standard deviation of 0.5 kilograms. The company wishes to test the hypothesis using a random sample of 4 specimens. H0: μ =24 against H1: μ<24 (a) What is the type I error probability if the critical region is defined as kilograms? (b) Find beta for the case where the true mean elongation is 23.24 kilograms....
You are a water filter manufacturer trying to decide if you should invest in an automatic...
You are a water filter manufacturer trying to decide if you should invest in an automatic or manually operated machinery. Both alternatives’ present costs are pegged at $5000, however, they lead to different revenue patterns thereafter. The automatic machine allows for higher production levels and thus more revenues immediately, however more energy costs over time than the manual machine means that net revenues diminish over time. The manual machine does not produce as many filters initially but has no energy...
You are a water filter manufacturer trying to decide if you should invest in an automatic...
You are a water filter manufacturer trying to decide if you should invest in an automatic or manually operated machinery. Both alternatives’ present costs are pegged at $5000, however, they lead to different revenue patterns thereafter. The automatic machine allows for higher production levels and thus more revenues immediately, however more energy costs over time than the manual machine means that net revenues diminish over time. The manual machine does not produce as many filters initially but has no energy...
Avril Skatergirl is trying to decide which recording contract she should accept and wishes it wasn’t...
Avril Skatergirl is trying to decide which recording contract she should accept and wishes it wasn’t so complicated that she can’t keep her head above water amidst all the numbers. Getting it right could be worth more than just a nickel back. Her opportunity cost is 5% p.a. I’m With You Productions Inc. offers a payment of $2 million now on her next album plus 50% royalty on gross sales of $5 million for two years, with the royalties paid...
Avril Skatergirl is trying to decide which recording contract she should accept and wishes it wasn’t...
Avril Skatergirl is trying to decide which recording contract she should accept and wishes it wasn’t so complicated that she can’t keep her head above water amidst all the numbers.  Getting it right could be worth more than just a nickel back. Her opportunity cost is 5% p.a. I’m With You Productions Inc. offers a payment of $2 million now on her next album plus 50% royalty on gross sales of $5 million for two years, with the royalties paid at...
Avril Skater girl is trying to decide which recording contract she should accept and wishes it...
Avril Skater girl is trying to decide which recording contract she should accept and wishes it wasn’t so complicated that she can’t keep her head above water amidst all the numbers. Getting it right could be worth more than just a nickel back. Her opportunity cost is 5% p.a. I’m With You Productions Inc. offers a payment of $2 million now on her next album plus 50% royalty on gross sales of $5 million for two years, with the royalties...
Your company is trying to decide which one of two projects it should accept. Both projects...
Your company is trying to decide which one of two projects it should accept. Both projects have the same start-up costs. Project 1 will produce annual cash flows of $52 000 at the end of each year for six years. Project 2 will produce cash flows of $39 000 at the beginning of each year for eight years. The company requires a 15% return. Required: a. Whichprojectshouldthecompanyselectandwhy? b. Whichprojectshouldthecompanyselectiftheinterestrateis12%atthe cash flows in Project 2 is also at the end of...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT