The Jamestown Steel Company Manufactures and Assembles Desks and Other $\mu$

question 122

Multiple Choice

The Jamestown Steel Company manufactures and assembles desks and other office equipment at several plants. The weekly production of the Model A325 desk follows a normal probability distribution, with a mean of 200 and a standard deviation of 16. Recently, due to market expansion, new production methods have been introduced and new employees hired. The vice president of manufacturing would like to investigate whether there has been a change in the weekly production of the Model A325 desk. The mean number of desks produced last year (50 weeks, because the plant was shut down two weeks for vacation) is 203.5. Is the mean number of desks produced different from 200? Test using the.01 significance level.

• A) The alternate hypothesis is \(\mu\) \(\le\) 200.
• B) It is appropriate to use the z-test.
• C) The decision rule is: if the computed value of the test statistic is not between -1.645 and -1.645, reject the null hypothesis.
• D) The area where H0 is not rejected is therefore .98.

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Definitions:

Face Value

The nominal value printed on a financial instrument like a bond or currency note, representing its legal value.

Issuer

An entity, such as a corporation or government, that develops and offers securities for sale to investors to raise capital.

Issued

Pertains to securities or other financial instruments that have been created and offered for sale to investors by a corporation or government entity.

Cash Received

The total amount of cash that an entity collects during a specific period, from various sources including sales, financing, or investments.