A Medical Engineering Company Creates X-Ray Machines

question 33

Short Answer

A medical engineering company creates x-ray machines. The machines the company sold in 1995 were expected to last six years before breaking. To test how long the machines actually lasted, the company took a simple random sample of six machines. The company got the following results (in years) for how long the x-ray machines lasted: 8, 6, 7, 9, 5, and 7. Assume the distribution of the longevity of x-ray machines is normally distributed. Construct a 98% confidence interval for the average longevity of x-ray machines.

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Definitions:

Depository Bank

A financial institution where securities and assets are stored and managed on behalf of their clients.

Holder in Due Course

A person or entity that has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defenses and claims that could be used against the original payee.

Stop-Payment Order

An order by a drawer that instructs the drawee bank not to pay an issued check.

UCC

The Uniform Commercial Code (UCC) is a set of laws that provide legal standards and regulations for commercial transactions and dealings across the United States.