The Local Oil Changing Business Is Very Busy on Saturday

question 7

Multiple Choice

The local oil changing business is very busy on Saturday mornings and is considering expanding.A national study of similar businesses reported the mean number of customers waiting to have their oil changed on Saturday morning is 3.6.Suppose the local oil changing business owner, wants to perform a hypothesis test.The null hypothesis is the population mean is 3.6 and the alternative hypothesis that the population mean is not equal to 3.6.The owner takes a random sample of 16 Saturday mornings during the past year and determines the sample mean is 4.2 and the sample standard deviation is 1.4.It can be assumed that the population is normally distributed and the level of significance is 0.05.The critical value found in the "t" table for this problem is _______.

• A)1.753
• B)2.947
• C)2.120
• D)2.131
• E)2.311

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Definitions:

Appraisal Cost

The cost associated with the process of inspecting and testing materials, parts, and products to ensure they meet required specifications.

Quality Cost Report

An analysis that quantifies the total costs associated with ensuring and maintaining the quality of products or services, including prevention, appraisal, and failure costs.

Eagleson Company

A fictional name frequently used in business examples or case studies to represent a company.

Appraisal Cost

Costs associated with the evaluation and inspection of purchased materials and finished products to ensure quality requirements are met.