A National Manufacturer of Ball Bearings Is Experimenting with Two

question 6

Multiple Choice

A national manufacturer of ball bearings is experimenting with two different processes for producing precision ball bearings.It is important that the diameters be as close as possible to an industry standard.The output from each process is sampled and the average error from the industry standard is calculated.The results are presented below. The researcher is interested in determining whether there is evidence that the two processes yield different average errors.Assume that the population standard deviations are equal. If we test the null hypothesis at the 1% level of significance,what is the decision?

• A)Reject the null hypothesis and conclude the means are different.
• B)Reject the null hypothesis and conclude the means are the same.
• C)Fail to reject the null hypothesis and conclude the means are the same.
• D)Fail to reject the null hypothesis and conclude the means are different.

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Definitions:

Mergers

The combination of two or more companies into one, with the aim of achieving synergies such as higher efficiency or market share.

Contracts

legally binding agreements between two or more parties that outline terms and conditions of a specific transaction or relationship.

Marginal Cost

The cost incurred to produce one additional unit of a good or service, critical for pricing and production decisions.

R&D

Research and Development, a business or governmental activity aimed at discovering new knowledge and its application.