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:

Cost of Goods Sold

An expense measure that reflects the cost of the materials and labor directly tied to the production of goods sold by a company.

Inventory Purchases

The total amount of goods a company buys for the purpose of reselling them during a particular period, often used to replenish stock levels.

Merchandise

Goods that are bought, sold, or traded, often in the context of retail commerce.

Credit Sales

Sales made by a business where the payment is received after the service or product has been delivered.