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Videocassette recorder (VCR) tapes are designed so that users can repeatedly record new material over old material. However, after a number of re-recordings the tape begins to deteriorate. A VCR tape manufacturer is experimenting with a new technology, which hopefully will produce longer-lasting tapes. Thirty of the old-style tapes and 30 utilising the new technology were used in an experiment. The tapes were used to record and re-record programs until they began to deteriorate. The number of re-recordings is assumed to be normally distributed. It is generally accepted that the number of re-recordings should exceed 55. Any tapes that do not meet this criterion are considered to be unacceptable. The number of re-recordings were observed and shown in the accompanying table.
a. Do the data allow us to infer at the 10% significance level that the new-technology tapes are superior to the old-style tapes in terms of the number of unacceptable tapes?
b. Find the p-value of the test in a. and explain how to use it to test the hypotheses.
Excludable
A property of a good or service whereby it is possible to prevent people from using it if they have not paid for it or met specific conditions.
Club Good
A type of good that is excludable but non-rivalrous, meaning people can be prevented from using it, but one person's use does not diminish availability for others.
Cost-Benefit Analysts
Professionals who assess the economic pros and cons of different projects or decisions to determine their financial viability.
Public Projects
Initiatives funded and executed by the government aimed at benefiting the general public, such as infrastructure development and educational programs.
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