Discrete Components Inc $\alpha$ = 005, the Null Hypothesis Is ___ $\mu$

question 44

Multiple Choice

Discrete Components Inc.manufactures a line of electrical resistors.Presently, the carbon composition line is producing 100 ohm resistors.The population variance of these resistors "must not exceed 4" to conform to industry standards.Periodically, the quality control inspectors check for conformity by randomly select 10 resistors from the line, and calculating the sample variance.The last sample had a variance of 4.36.Assume that the population is normally distributed.Using $\alpha$ = 0.05, the null hypothesis is ___.

• A)\(\mu\) = 100
• B)\(\sigma\) \(\le\) 10
• C)s² \(\le\) 4
• D)\(\sigma\)² ≤ 4
• E)n = 100

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Definitions:

Budgeted Overhead

Budgeted overhead is the estimated total cost of all overhead expenses planned for a specific period in the future.

Controllable Overhead Variance

The difference between the actual overhead costs incurred that are directly manageable by a manager and the budgeted or standard overhead costs.

Direct Labor Hours

The total number of hours worked by employees directly involved in the manufacturing process.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor.