A Manufacturer of an Automobile Part Has a Process That

question 130

Short Answer

A manufacturer of an automobile part has a process that is designed to produce the part with a target of 2.5 inches in length. In the past, the standard deviation of the length has been .035 inches. In an effort to reduce the variation in the process, the manufacturer has redesigned the process. A sample of 25 parts produced under the new process shows a sample standard deviation of .025 inches. Test the claim that the new process standard deviation has improved from the current process at α = .05.

---

Definitions:

Efficient Level

The point at which a system or process achieves its maximum productivity with the least wasted effort or expense.

Efficient Amount

The quantity of a good or service that achieves the optimal balance between benefits and costs, maximizing societal welfare.

Marginal Social Cost

The additional cost imposed on society as a whole by producing one more unit of a good or service.

External Costs

External costs are expenses that are not borne by the individuals or organizations responsible but rather by society as a whole, often involving negative environmental impacts.