Automobiles Manufactured by the Efficiency Company Have Been Averaging 42

question 95

Essay

Automobiles manufactured by the Efficiency Company have been averaging 42 miles per gallon of gasoline in highway driving. It is believed that its new automobiles average more than 42 miles per gallon. An independent testing service road-tested 36 of the automobiles. The sample showed an average of 42.8 miles per gallon with a standard deviation of 1.2 miles per gallon.
a.With a 0.05 level of significance using the critical value approach, test to determine whether or not the new automobiles actually do average more than 42 miles per gallon.
b.What is the p-value associated with the sample results? What is your conclusion based on the p-value?

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Definitions:

Lay Off Workers

The process of temporarily or permanently removing employees from their positions due to economic downturns, organizational restructuring, or cost-cutting measures.

Aggregate Plan

A process in operations management used to develop, analyze, and maintain a preliminary, approximate schedule of the overall operations of an organization.

Chase Strategy

A planning strategy used in production management where production rates are adjusted in response to changes in demand, aiming to match supply with demand as closely as possible.

Production Rate

The speed at which goods are manufactured within a specified time period.