A New Light Bulb Is Being Considered for Use in an Office

question 83

Essay

A new light bulb is being considered for use in an office with computers. It is decided that the new bulb will only be used if it has a mean lifetime of more than 500 hours. A random sample of 40 bulbs is selected and placed on life test. The mean and standard deviation are found to be 505 hours and 18 hours, respectively. Perform the appropriate test of hypothesis to determine whether the new bulb should be used. Use a 0.01 level of significance.
Test statistic = ______________
Critical Value(s) = ______________
Conclusion: ______________
Interpretation: __________________________________________

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Definitions:

Direct Labor

Refers to the wages paid to workers who are directly involved in the production of goods or services.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted or expected costs, indicating overhead management effectiveness.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as salaries of factory supervisors and rent of the manufacturing facility.

Materials Price Variance

The difference between the actual cost of raw materials and the standard cost multiplied by the quantity of materials purchased, used as a measure of cost control.