The Manufacturer of a Particular Battery Pack for a Laptop

question 87

Essay

The manufacturer of a particular battery pack for a laptop computer claims the battery pack can function for eight hours, on average, before having to be recharged. A random sample of 36 such battery packs was selected and tested. The mean and standard deviation were found to be 6 hours and 1.8 hours, respectively. Find a 95% lower confidence bound for the true average time the battery pack can function before having to be recharged. Interpret this bound.

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Definitions:

Physical Units

A measure of production output or inventory in terms of the actual number of units, as opposed to the cost or value of the units.

Percentage of Completion

A method of accounting for long-term contracts in which income is recognized as a proportion of work completed at certain stages.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into the amount of finished goods units they represent.

Conversion Costs

Costs incurred by a company in the process of converting raw materials into finished goods, typically including labor and overhead.