The Bradfield Container Company Makes "Cardboard" Boxes for Commercial Use

question 85

Essay

The Bradfield Container Company makes "cardboard" boxes for commercial use (i.e., pizza boxes). One of the big issues for the company is the set-up time required to change over from one order to the next. At one particular machine, the set-up time is thought to be uniformly distributed between 10 and 21 minutes. To test whether this is true or not, a random sample of 180 set-ups on this machine was selected with set-up time rounded to the nearest two-minute intervals. The following results occurred:
a. What are the appropriate null and alternative hypothesis to be tested?
b. Based on the null and alternative hypotheses stated in part a, determine the expected frequencies for each set-up time category.
c. Assuming that we wish to conduct the hypothesis test at the .05 level, what is the critical value that should be used?
d. Compute the test statistic and carry out the hypothesis test.

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Definitions:

Income Increases

A rise in the amount of money received, especially on a regular basis, for work or through investments, which can impact consumption, savings, and overall economic well-being.

Quantity Demanded

The specific amount of a product that consumers are willing to buy at a given price, holding all other factors constant.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.

Complements

Goods that are often used together, where an increase in demand for one leads to an increase in demand for the other.