Answers
He should carry out a 2-tail test because in testing whether the alternative process
is different, the time required could be higher or lower.
Since is large, by the Central Limit Theorem, the sample mean time
taken will be normally distributed approximately so it is not necessary to know anything
about the distribution of the times taken.
Do not reject
There is insufficient evidence at the level of significance to conclude whether the average time taken for the manufacture of a control panel is different using the alternative process
There is insufficient evidence at the level of significance to conclude whether the average time taken for the manufacture of a control panel is different using the alternative process
The alternative process might be able to produce electronic control panels of
higher quality which will justify the use of a process that takes a longer average time.
If
then the Finance Manager will conclude that the average time taken for the manufacture of
a control panel is shorter using the alternative process.
Full solutions
(i)
He should carry out a 2-tail test because in testing whether the alternative process
is different, the time required could be higher or lower.
(ii)
Since is large, by the Central Limit Theorem, the sample mean time
taken will be normally distributed approximately so it is not necessary to know anything
about the distribution of the times taken.
(iii)
Under test statistic
approximately by CLT since is large
There is insufficient evidence at the level of significance to conclude whether
the average time taken for the manufacture of a control panel is different using the alternative process
(iv)
The alternative process might be able to produce electronic control panels of
higher quality which will justify the use of a process that takes a longer average time.
(v)
Under test statistic
approximately by CLT since is large
For a left-tail test at level of significance,
If the manager is to conclude that the average time taken is shorter (reject )
If
then the Finance Manager will conclude that the average time taken for the manufacture of
a control panel is shorter using the alternative process