[Objective: Understand the Hypothesis Test of the Mean] Suppose a Consumer

question 5

Multiple Choice

[Objective: Understand the hypothesis test of the mean] Suppose a consumer product researcher wanted to find out whether a Sharpie lasted longer than the manufacturer's claim that their Sharpies could write continuously for a mean of 14 hours. The researcher tested 40 Sharpie's and recorded the number of continuous hours each Sharpie wrote before drying up. Test the hypothesis that Sharpies can write for more than a mean of 14 continuous hours. Following are the summary statistics: =14.5 hours, s=1.2 hours
At the 5% significance level, t=2.635 ; p=0.006. State your conclusion about the original claim.

• A) Do not reject the null hypothesis; there is not strong enough evidence to suggest that the Sharpies last longer than a mean of 14 hours.
• B) Reject the alternative hypothesis; there is strong evidence to suggest that the Sharpies last longer than a mean of 14 hours.
• C) Reject the null hypothesis; there is strong evidence to suggest that the Sharpies last longer than a mean of 14 hours.
• D) There needs to be more data to determine if the Sharpies last longer than a mean of 14 hours.

---

Definitions:

Variable Input

A variable input is one whose amount can be adjusted in the short term to either raise or lower output levels.

MRP

Acronym for Marginal Revenue Product, which measures the addition to total revenue resulting from the sale of the output produced by one more unit of a variable input.

Haircuts

Often used as an example in economics, referring to a service that cannot be stored, saved, or inventoried, and must be consumed at the point of production.

MRP

Material Requirements Planning, a planning and inventory control system used to manage manufacturing processes.