The Bradfield Container Company Makes "Cardboard" Boxes for Commercial Use

question 62

Essay

The Bradfield Container Company makes "cardboard" boxes for commercial use (i.e.,pizza boxes).One of the big issues for the company is the set-up time required to change over from one order to the next.At one particular machine,the set-up time is thought to be uniformly distributed between 10 and 21 minutes.To test whether this is true or not,a random sample of 180 set-ups on this machine was selected with set-up time rounded to the nearest two-minute intervals.The following results occurred: a.What are the appropriate null and alternative hypothesis to be tested?
b.Based on the null and alternative hypotheses stated in part a,determine the expected frequencies for each set-up time category.
c.Assuming that we wish to conduct the hypothesis test at the .05 level,what is the critical value that should be used?
d.Compute the test statistic and carry out the hypothesis test.

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Definitions:

Next Period

Refers to the upcoming or following time frame in financial and operational planning, often contextually determined.

Adjusting Journal Entry

An accounting procedure used at the end of a reporting period to allocate income and expenditures to the correct accounting period.

Accrued Revenue

Revenue earned but not yet received or recorded at the end of an accounting period.

Fees Earned

Revenue generated from services provided by a business during a specific period.