SCENARIO 9-11-A
You Are the Quality Control Manager of a Water

question 89

True/False

SCENARIO 9-11-A
You are the quality control manager of a water bottles company. One of the biggest complaints in the
past years has been the breakage and, hence, the concern on the durability of the connector between
the lid and the bottle which many users use as a handle for the bottles. To collect evidence before
implementing any modification to the production process, your department has subjected 50 water
bottles to a durability test and the following data on the number of times the handles have been used
to lift the bottles before they break are contained in the file Scenario9-11-DataA.XLSX. $$\begin{array} { l l l l l l l l l l } 1495 & 1499 & 1502 & 1500 & 1491 & 1498 & 1498 & 1495 & 1488 & 1516 \\1513 & 1486 & 1504 & 1503 & 1493 & 1504 & 1489 & 1500 & 1495 & 1499 \\1501 & 1507 & 1511 & 1496 & 1486 & 1497 & 1510 & 1504 & 1493 & 1482 \\1511 & 1502 & 1520 & 1514 & 1486 & 1514 & 1500 & 1505 & 1512 & 1500 \\1504 & 1498 & 1503 & 1514 & 1474 & 1489 & 1488 & 1506 & 1517 & 1490\end{array}$$ Assume that the number of times the handles have been used to lift the bottles before they break
follows a normal distribution. You want to test to see if there is enough evidence that the mean
number of times the handles have been used to lift the bottles before they break is more than 1500.
-Referring to Scenario 9-11-A, the null hypothesis will be rejected at 5% level of
significance.

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Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Fixed Costs

Expenses that do not change in total regardless of the level of production or business activity.

Break-Even Point

The juncture where the overall expenses match the overall income, leading to neither a profit nor a loss.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of production volume, such as rent, salaries, and insurance premiums.