A National Organization Has Been Working with Utilities Throughout the Nation

question 90

Multiple Choice

A national organization has been working with utilities throughout the nation to find sites for large wind machines that generate electricity. Wind speeds must average more than 16 miles per hour (mph) for a site to be acceptable. Recently, the organization conducted wind speed tests at a particular site. Based on a sample of n = 50 wind speed recordings (taken at random intervals) , the wind speed at the site averaged x = 16.7 mph, with a standard deviation of s = 3.6 mph. To determine whether the site meets the organization's requirements, consider the test, H0: μ = 16 vs. Ha: μ > 16, where μ is the true mean wind speed at the site and α = .01. Suppose the value of the test statistic were computed to be 1.37. State the conclusion.

• A) At α = .01, there is insufficient evidence to conclude the true mean wind speed at the site exceeds 16 mph.
• B) At α = .01, there is sufficient evidence to conclude the true mean wind speed at the site exceeds 16 mph.
• C) We are 99% confident that the site meets the organization's requirements.
• D) We are 99% confident that the site does not meet the organization's requirements.

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Definitions:

Cash Inflows

Refers to the money received by a business from its various activities, including sales, investments, financing, etc.

Initial Cost

The upfront expenditure required to purchase an asset or to start a project, including setup or installation fees.

Initial Outlay

The initial investment amount required to start a project or purchase an asset.

Future Cash Inflows

Expected incoming funds or earnings generated from investments, operations, or financial activities in the future.