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

question 186

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, you can conclude that 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 when allowing for a 1% probability of committing a Type I error.

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Definitions:

Average Price Level

A measure of the overall level of prices in an economy, often considered in terms of a price index.

Good and Service

Products that satisfy human wants directly (goods) or indirectly (services).

Hyperinflation

An extremely high and typically accelerating rate of inflation, often exceeding 50% per month, leading to a rapid erosion of the real value of the local currency.

Recession

A significant decline in economic activity across the economy, lasting for months or years, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.