4.07. A taxi company manager is trying to decide whether the use of radial tires instead...

4.07. A taxi company manager is trying to decide whether the use of radial tires instead of regular belted tires improves fuel economy. Randomly selected 12 cars with radial tires yielded in a sample mean of 5.7 and sample standard deviation of 0.4, another randomly selected 15 cars with belted tires yielded a sample mean of 5.2 and a standard deviation of 0.8. Assume the populations to be approximately normal with equal variances.

State and conclude your hypothesis at the 0.05 level of significance based on manager’s claim?

Find P-Value.

Expert Solution

orchestra answered 1 year ago

he manager of a fleet of automobiles is testing two brands of radial tires and assigns...

he manager of a fleet of automobiles is testing two brands of radial tires and assigns one tire of each brand at random to the two rear wheels of eight cars and runs the cars until the tires wear out. The data (in kilometers) follow. Find a 99% confidence interval on the difference in the mean life. Car Brand 1 Brand 2 1 36,925 34,318 2 45,300 42,280 3 36,239 35,524 4 32,100 31,950 5 37,210 38,015 6 48,360 47,800...

A company is trying to decide whether to bid for a certain contract or not. They...

A company is trying to decide whether to bid for a certain contract or not. They estimate that merely preparing the bid will cost $10000.If their company bids, then they estimate that there is a 50% chance that their bid will be put on the “short-list;” otherwise their bid will be rejected. Once “short-listed” the company will have to supply further detailed information (entailing costs estimated at $5000). After this stage their bid will either be accepted or rejected. The...

Question 2 A manager is trying to decide whether to build a small, medium, or large...

Question 2 A manager is trying to decide whether to build a small, medium, or large facility. Demand can be low, average, or high, with the estimated probabilities being 0.25, 0.40, and 0.35, respectively. A small facility is expected to earn an after-tax net present value of just $18,000 if demand is low. If demand is average, the small facility is expected to earn $75,000; it can be increased to medium size to earn a net present value of $60,000....

A manager is trying to decide whether to build a small, medium, or large facility. Demand...

A manager is trying to decide whether to build a small, medium, or large facility. Demand can be low, average, or high, with the estimated probabilities being 0.25, 0.40, and 0.35, respectively. A small facility is expected to earn an after-tax net present value of just $18,000 if demand is low. If demand is average, the small facility is expected to earn $75,000; it can be increased to medium size to earn a net present value of $60,000. If demand...

4.20 A designer is trying to decide whether to use a circular or square single cell...

4.20 A designer is trying to decide whether to use a circular or square single cell bar to carry a torsion load. The wall thickness must be the same for both designs. The weight must be the same regardless of the choice. Based on the thin-wall theory, which is the better choice? r = radius of circular cross-section 2w = width of square cross-section Use thin-wall approximations for the cross-sectional areas.

The management of VITULLO Company is trying to decide whether to continue manufacturing a part or...

The management of VITULLO Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, called FIZBE, is a component of the company’s finished product. The following information was collected from the accounting records and production data for the year ending December 31, 2017. 5,000 units of FIZBE were produced in the machining department. Variable manufacturing costs applicable to the production each FIZBE unit were: direct materials $4.75, direct labor...

The editor of a textbook publishing company is trying to decide whether to publish a proposed...

The editor of a textbook publishing company is trying to decide whether to publish a proposed business statistics textbook. Information on previous textbooks published indicate that 10 % are huge successes, 20 % are modest successes, 40 % break even, and 30 % are losers. However, before a publishing decision is made, the book will be reviewed. In the past, 96 % of the huge successes received favorable reviews, 60 % of the moderate successes received favorable reviews, 50 %...

The Rogers Construction Company is trying to decide whether to make a bid on a project...

The Rogers Construction Company is trying to decide whether to make a bid on a project against 4 competitors. The lowest bid will win the contract and be paid the amount they bid. It believes it will cost the company £10,000 to complete the project (if it wins the contract) and £350 to prepare the bid. Based on historical data, Rogers believes each competitor’s bid has a normal distribution with mean £15,000 and standard deviation £1,500. a) Set up a...

Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it...

Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, called CIO, is a component of the company’s finished product. The following information was collected from the accounting records and production data for the year ending December 31, 2018. 1. 8,100 units of CIO were produced in the Machining Department. 2. Variable manufacturing costs applicable to the production of each CIO unit were: direct materials $4.58, direct labor...

Coyote and Bird run the Acme Fireworks Company and are trying to decide whether or not...

Coyote and Bird run the Acme Fireworks Company and are trying to decide whether or not to purchase new equipment to streamline the production process. Coyote argues that they should use IRR as the basis for making the decision while Bird argues they should be using the NPV. They ask you, as the chief financial officer of the company your thoughts on the capital budgeting decision. What do you tell them?

Question