A Machine Cuts Steel to Length for Nails

question 62

Essay

A machine cuts steel to length for nails. The mean length of a nail is 43 millimeters. There is concern that the settings of the machine producing the nails have changed. To test the claim, 12 nails (n = 12) were sampled. The mean of the sample is 41.5 and the standard deviation is 1.784. What is the computed value of the test statistic?

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Definitions:

Net Credit Sales

The total revenue from sales made on credit, minus returns and allowances, over a specific period.

Accounts Receivable

A financial record representing the money owed to a company by its customers for goods or services delivered on credit.

Profitability Ratio

A category of financial metrics used to assess a business's ability to generate earnings relative to its revenue, assets, equity, or other financial aspects.

Payout Ratio

A financial metric indicating the proportion of earnings a company pays to its shareholders in dividends, expressed as a percentage of the company's net income.