The Manager of the Quality Department for a Tire Manufacturing

question 16

True/False

The manager of the quality department for a tire manufacturing company wants to know the average tensile strength of rubber used in making a certain brand of radial tire.The population is normally distributed and the population standard deviation is known.She uses a Z test to test the null hypothesis that the mean tensile strength is less than or equal to 800 pounds per square inch.The calculated Z test statistic is a positive value that leads to a p-value of .067 for the test.If the significance level is .10,the null hypothesis would be rejected.

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Definitions:

Implicit Cost

The opportunity cost incurred by using assets, resources, or funds for a specific purpose rather than the next best alternative.

Competitive Rate

Pricing that is on par or better than what is offered by competitors in the market, often used to attract customers.

Property Taxes

Levies imposed by local governments on real estate properties, calculated based on the value of the property.

Opportunity Costs

Sacrificing potential profits from other possibilities when a certain option is selected.