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Before agreeing to purchase a large order of polyethylene sheaths for a particular type of high pressure oil-filled submarine power cable,a company wants to see conclusive evidence that the true standard deviation of sheath thickness is less than .05 inches.
-What hypotheses should be tested,and why?


Definitions:

Percentage

A way of expressing a number as a fraction of 100, denoted using the symbol "%".

Unit Variable Cost

The cost attributed to each unit produced, varying with the level of output.

Selling Price

The amount of money for which a product or service is sold to the customer.

Contribution Margin

The selling price per unit, minus the variable cost per unit, which helps in determining the profitability of products.

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