SCENARIO 9-4 A Drug Company Is Considering Marketing a New Local Anesthetic.The

question 54

Short Answer

SCENARIO 9-4
A drug company is considering marketing a new local anesthetic.The effective time of the anesthetic the drug company is currently producing has a normal distribution with an mean of
7.4 minutes with a standard deviation of 1.2 minutes.The chemistry of the new anesthetic is such that the effective time should be normally distributed with the same standard deviation,but the mean effective time may be lower.If it is lower,the drug company will market the new anesthetic;otherwise,they will continue to produce the older one.A sample of size 36 results in a sample mean of 7.1.A hypothesis test will be done to help make the decision.
-Referring to Scenario 9-4,the p-value of the test is .

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Definitions:

Money Market Securities

Short-term debt instruments, commonly including treasury bills, commercial paper, and certificates of deposit, known for their liquidity and low-risk profile.

Lockbox System

A banking service offered to businesses for collecting payments from clients, using a dedicated post office box to accelerate the process of gathering checks.

Treasury Bills

Short-term government securities with maturity periods typically less than a year, considered very safe investments.

Target Cash Balance

An optimal amount of cash that a company aims to hold to minimize costs while avoiding liquidity issues.