A Truck Company Wants On-Time Delivery for 98% of the Parts

question 206

Multiple Choice

A truck company wants on-time delivery for 98% of the parts they order from a metal Manufacturing plant. They have been ordering from Hudson Manufacturing but will switch to a New, cheaper manufacturer (Steel-R-Us) unless there is evidence that this new manufacturer Cannot meet the 98% on-time goal. As a test the truck company purchases a random sample of Metal parts from Steel-R-Us, and then determines if these parts were delivered on-time. Which Hypothesis should they test?

• A) \(\mathrm { H } _ { 0 } : p = 0.98\)
• \(\mathrm { H } _ { \mathrm { A } } : p < 0.98\)
• B) \(\mathrm { H } _ { 0 } : p < 0.98\)
• \(\mathrm { H } _ { \mathrm { A } } : p > 0.98\)
• C) \(\mathrm { H } _ { 0 } : p = 0.98\)
• \(\mathrm { H } _ { \mathrm { A } } : p \neq 0.98\)
• D) \(\mathrm { H } _ { 0 } : p = 0.98\)
• \(\mathrm { H } _ { \mathrm { A } } : p > 0.98\)
• E) \(\mathrm { H } _ { 0 } : p > 0.98\)
• \(\mathrm { H } _ { \mathrm { A } } : p = 0.98\)

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Definitions:

Equipment Depreciation

The process of allocating the cost of physical assets used in a business over their useful life, recognizing the wear and tear over time.

Indirect Labor

Workers who provide support to the production process but are not directly involved in creating the product.

Resource Consumption

The amount of resources (such as raw materials, energy, or labor) used by an organization in its operational processes.

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity resource to all products and services according to the actual consumption.