A Manufacturer of a Chemical Used in Glue, Attempting to Control

question 184

Multiple Choice

A manufacturer of a chemical used in glue, attempting to control the amount of a hazardous chemical its workers are exposed to, has given instructions to halt production if the mean amount in the air exceeds 3.0ppm. A random sample of 50 air specimens produced the following statistics: sample mean = 3.1 ppm, sample standard deviation = 0.5 ppm. Assume measurements are normally distributed.
-The null and alternative hypotheses that would be used to halt production is ______.

• A)H₀: ? = 3.0 vs.H_a: ? ? 3.0
• B)H₀: ? ? 3.0 vs.H_a: ? < 3.0
• C)H₀: ? ? 3.1 vs.H_a: ? < 3.1
• D)H₀: ? ? 3.0 vs.H_a: ? = 3.0
• E)H₀: ? ? 3.0 vs.H_a: ? > 3.0

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Definitions:

Service Department Costs

Costs associated with the departments that do not directly produce goods but provide essential support services to production departments.

First-In, First-Out Method

An accounting method for valuing inventory where the oldest items are sold or used first.

Equivalent Units

A concept in process costing that converts partially completed units into a number of equivalent full units for the purpose of cost assignment.

Weighted-Average Method

An inventory valuation technique that calculates the cost of inventory by taking the average cost of all similar items present in the inventory.