TABLE 9-1 A Manufacturer Produces Light Bulbs That Have a Mean Life

question 152

Short Answer

TABLE 9-1
A manufacturer produces light bulbs that have a mean life of at least 500 hours when the production process is working properly. Based on past experience, the population standard deviation is 50 hours and the light bulb life is normally distributed. The operations manager stops the production process if there is evidence that the population mean light bulb life is below 500 hours.
-Referring to Table 9-1, if you select a sample of 100 light bulbs and are willing to have a level of significance of 0.01, the probability of the operations manager failing to stop the process if the population mean bulb life is 490 hours is ________.

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Definitions:

Accounts Receivable Balance

The sum total of debts customers have towards a company for delivered goods or services which have not been paid for yet.

Wholesale Cost

The price charged for a product by the wholesaler, which is typically lower than the retail price.

Accounts Payable Balance

The total amount of money a company owes to its suppliers or creditors at a given point in time.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the material and labor costs.