Allied Corporation Is Trying to Determine Whether to Purchase Machine

question 56

Essay

Allied Corporation is trying to determine whether to purchase Machine A or B. It has leased the two machines for a month. A random sample of 5 employees has been taken. These employees have gone through a training session on both machines. Below you are given information on their productivity rate on both machines. (Let the difference d = Machine A - Machine B.)

a.State the null and alternative hypotheses for a two-tailed test.
b.Find the mean and standard deviation for the difference.
c.Compute the test statistic.
d.Test the null hypothesis stated in Part a at the 10% level.

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Definitions:

Event

An occurrence or outcome in a statistical experiment or study that can be distinctly identified.

Probability

A measure of the likelihood that an event will occur, often quantified as a number between 0 and 1.

Relative Frequency

The ratio of the number of times a value occurs compared to the total number of observations.

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