TABLE 9-1 Microsoft Excel Was Used on a Set of Data Involving

question 51

True/False

TABLE 9-1
Microsoft Excel was used on a set of data involving the number of defective items found in a random sample of 46 cases of light bulbs produced during a morning shift at a plant. A manager wants to know if the mean number of defective bulbs per case is over 20 during the morning shift. She will make her decision using a test with a level of significance of 0.10. The following information was extracted from the Microsoft Excel output for the sample of 46 cases:
n = 46; Arithmetic Mean = 28.00; Standard Deviation = 25.92; Standard Error = 3.82;
Null Hypothesis: H₀ : μ ≤ 20.000; α = 0.10; df = 45; T Test Statistic = 2.09;
One-Tail Test Upper Critical Value = 1.3006; p-value = 0.021; Decision = Reject.
-Referring to Table 9-1, the manager can conclude that there is sufficient evidence to show that the mean number of defective bulbs per case is over 20 during the morning shift with no more than a 1% probability of incorrectly rejecting the true null hypothesis.

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Relevant Resources

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Decreasing-cost Industry

An industry in which costs per unit decrease as the scale of production increases.

Long-run Supply Curve

A curve that shows the relationship between the price of a good and the quantity supplied over a long period, taking into account all possible adjustments including entry and exit of firms.

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