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Jamestown Steel Company Manufactures and Assembles... : Step-By-Step

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Jamestown Steel Company manufactures and assembles...

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equipment-several-plants-weste-q32411641

Question

(1)

Jamestown Steel Company manufactures and assembles desks and other office equipment
at several plants in Western New York state. The weekly production of the model A325 desk
at the Fredonia Plant follows a normal probability distribution with a mean of 200 and a
standard deviation of 16. Recently because of the market expansion, new production
methods have been introduced and new employees hired. The vice president of the
manufacturing would like to investigate whether there has been a change in the weekly
production of the model A325 desk. The mean number of desk produced last 50 weeks is
203.5. Is the mean number of desks produced at the Fredonia Plant different from 200 at the
0.01 significance level?

(a) Write appropriate null and alternative hypothesis to test whether the mean number of
desks produced at the Fredonia Plant different from 200 or not.

(b) Conduct the appropriate test for the above hypothesis in part (a) and write your decision
based on your findings.

Expert Answer

This solution was written by a subject matter expert. It's designed to help students like you
learn core concepts.

Step-by-step

1st step

All steps

Answer only

Step 1/4
Given :

Sample size, n = 50
Sample mean, $$\mathrm{\bar{x}} $$ = 203.5

Population standard deviation, $$\sigma$$ = 16

Population mean, $$\mathrm{\mu}$$ = 200

Significance level, $$\mathrm{\alpha}$$ = 0.01


Step 2/4

a) Claim: the mean number of desks produced at the Fredonia Plant is different from 200.

Hypothesis test :

The null and alternative hypothesis is

H : 𝜇 = 200
0

H : 𝜇 ≠ 200
a

Explanation:

The hypothesis test is a two tailed test

Step 3/4
b) Test statistic :

$$\small{
¯
x−𝜇
z =
𝜎
√n

203.5−200
=
16
√50

= 1.55
}$$
The test statistic is 1.55

P-value :

P-value with test statistic z = 1.55 is

$$\small{
p-value = 0.1211
Excel formula : = 2 × (1-NORM.DIST(ABS(1.55),0,1,TRUE))
}$$

P-value is 0.1211
Step 4/4

Since P-value is greater than significance level, $$\alpha$$ = 0.01 ,we failed to reject the null
hypothesis

Decision is fail to reject $$\mathrm{H_{0}}$$

Conclusion :

Fail to reject Ho. There is not sufficient evidence to conclude that the mean number of desks
produced at the Fredonia Plant is different from 200.

Explanation:

Decision rule :

If p-value $$ \le \alpha $$, reject the null hypothesis ( $$\mathrm{ H_{0}}$$ )

If p-value > $$\alpha $$, Do not reject the null hypothesis ( $$\mathrm{ H_{0}}$$ )

Final answer

a)Hypothesis test :
The null and alternative hypothesis is

H : 𝜇 = 200
0

Ha : 𝜇 ≠ 200

b)

Fail to reject Ho. There is not sufficient evidence to conclude that the mean number of desks
produced at the Fredonia Plant is different from 200.

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