A Manufacturer of an Automobile Part Has a Process That

question 70

Essay

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 0.035 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 0.025 inches.Test the claim that the new process standard deviation has improved from the current process at α = .05.

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Definitions:

Benchmark

A standard or point of reference against which things may be compared or assessed, often used in finance to measure the performance of investments.

Hedge Fund

An investment fund that employs diversified strategies to achieve high returns, including leverage, derivatives, and short selling.

Local Currency

The currency that is legally accepted in a particular country or jurisdiction, used for the settlement of financial transactions within its borders.

S&P 500

A U.S. stock market index reflecting the market value of 500 major companies with common stock on the NYSE or NASDAQ.