SCENARIO 5-8 Two Different Designs on a New Line of Winter Jackets

question 59

Short Answer

SCENARIO 5-8
Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing plants.Your profit (in thousands of dollars)will depend on the taste of the consumers when winter arrives.The probability of the three possible different tastes of the consumers and the corresponding profits are presented in the following table.

-Referring to Scenario 5-8,if you decide to choose Design A for 70% of the production lines and Design B for the remaining production lines,what is the expected profit?

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Definitions:

T-statistic

A ratio computed from the observed sample mean difference divided by the standard error of the mean, used in hypothesis testing.

Critical Values

Critical values are thresholds in statistical hypothesis testing that define the boundary between the region where the null hypothesis is rejected and the region where it is not rejected.

Level of Significance

The probability of rejecting the null hypothesis when it is actually true, used as a criterion for deciding the outcome of a statistical test.

T-statistic

A type of statistic used in hypothesis testing, particularly in situations dealing with small sample sizes or unknown standard deviations, to determine if there is a significant difference between two sets of data.