A Manufacturer of Copper Pipes Must Produce Pipes with a Diameter

question 66

Essay

A manufacturer of copper pipes must produce pipes with a diameter of precisely 5 inches. The firm's quality inspector wants to test the hypothesis that pipes of the proper size are being produced. Accordingly, a simple random sample of 100 pipes is taken from the production process. The sample mean diameter turns out to be 4.98 inches and the sample standard deviation 0.2 inches. Using a significance level of = 0.05, test the appropriate hypotheses.
Find the p-value for the test.
Test statistic = ______________
p-value = ______________
Conclusion: ______________
Interpretation: __________________________________________

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Definitions:

Cost of Goods Sold

The costs directly connected to the manufacture of goods a firm sells, comprising materials and labor.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Cost of Goods Sold

The direct expenses involved in producing the products a company sells, which cover both materials and labor.

Cash Cycle

The duration of time a company takes to convert its inventory and other resource inputs into cash flows from sales.