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

question 131

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 5% probability of incorrectly rejecting the true null hypothesis.

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Definitions:

Finished Goods Inventory

Items that have been completed by the manufacturing process and are ready for sale to customers.

Control Accounts

General ledger accounts that summarize the balances of a group of subsidiary accounts, facilitating the organization and verification of financial information.

Costing System

A method used by businesses to determine the cost associated with producing a product or offering a service, taking into account factors like materials, labor, and overhead.

Job Cost Sheet

A document used to record the costs associated with a specific job or project, tracking materials, labor, and overhead.