An Engineer Wants to Know If the Average Amount of Energy

question 20

Essay

An engineer wants to know if the average amount of energy used in his factory per day has changed since 2005.The factory used an average of 2,000 megawatt hours (mwh)per day prior to 2005.Since 2005,the engineer surveyed 400 days and found the average energy use was 2,040 mwh per day.Assume that the population standard deviation is 425 mwh per day.
a.Specify the null and alternative hypotheses to determine whether the factory's energy use has changed.
b.Calculate the value of the test statistic and the p-value.
c.At the 5% significance level,can you conclude that the energy usage has changed? Explain.

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Definitions:

Net Present Value

The discrepancy between incoming and outgoing cash flows' current worth over a certain timeframe, utilized in long-term investment planning to evaluate an investment's profit potential.

Future Cash Inflows

The expected receipts of cash in the future from investments, operations, or other sources.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Cash Inflow

The total amount of money being transferred into a business, from operations, investments, or financing activities.