TABLE 9-4 A Drug Company Is Considering Marketing a New Local Anesthetic

question 144

Short Answer

TABLE 9-4
A drug company is considering marketing a new local anesthetic. The effective time of the anesthetic the drug company is currently producing has a normal distribution with an mean of 7.4 minutes with a standard deviation of 1.2 minutes. The chemistry of the new anesthetic is such that the effective time should be normally distributed with the same standard deviation, but the mean effective time may be lower. If it is lower, the drug company will market the new anesthetic; otherwise, they will continue to produce the older one. A sample of size 36 results in a sample mean of 7.1. A hypothesis test will be done to help make the decision.
-Referring to Table 9-4, the p-value of the test is ________.

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Definitions:

Cost Reconciliation Report

A report used to reconcile the costs between starting and ending inventory levels with the costs of goods manufactured and sold.

Work in Process Inventory

Items that are in the process of being manufactured but are not yet complete.

Weighted-Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all items available for sale.

Equivalent Units

A technique in process costing that equates partially finished goods to a specific number of fully completed goods.