Solve the Problem $$\begin{array} { l l l l l } 518 & 548 & 561 & 523 & 536 \\499 & 538 & 557 & 528 & 563\end{array}$$

question 151

Essay

Solve the problem.
-In tests of a computer component, it is found that the mean time between failures is 520 hours. A modification is
made which is supposed to increase the time between failures. Tests on a random sample of 10 modified
components resulted in the following times (in hours) between failures. $$\begin{array} { l l l l l } 518 & 548 & 561 & 523 & 536 \\499 & 538 & 557 & 528 & 563\end{array}$$ At the 0.05 significance level, test the claim that for the modified components, the mean time between failures is
greater than 520 hours. Use the P-value method of testing hypotheses.

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Definitions:

Temporal Discounting

In decision making, the greater weight given to the present over the future.

Certainty Effect

A cognitive bias where people give greater weight to outcomes that are certain, compared to outcomes that are only probable.

Reactance

An inspired response to propositions, individuals, guidelines, or policies that challenge or remove certain freedoms of behavior.

Risk Aversion

In decision making, the greater weight given to possible losses than possible gains.