The Reliability of Two Types of Machines Used in the Same

question 96

Essay

The reliability of two types of machines used in the same manufacturing process is to be tested. The first machine failed to operate correctly in 90 out of 300 trials while the second type failed to operate correctly in 50 out of 250 trials.
a.Give a point estimate for the difference between the population proportions of these machines.
b.Calculate the pooled estimate of the population proportion.
c.Carry out a hypothesis test to check whether there is a statistically significant difference in the reliability for the two types of machines using a .10 level of significance.

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Definitions:

Activity-Based Costing System

A costing methodology that assigns costs to products or services based on the activities they require and the resources consumed by these activities.

Direct Labor Cost

The cost associated with workers who are directly involved in the production of goods or services.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, providing more accurate product costing.

Activity-Based Costing System

A refined method of allocating costs to products or services based on activities that drive costs, enhancing accuracy in costing.