Because of high production-changeover time and costs, a director of manufacturing must convince management that a proposed manufacturing method reduces costs before the new method can be implemented. The current production method operates with a mean cost of $280 per hour. A research study will measure the cost of the new method over a sample production period. (a) Develop the null and alternative hypotheses most appropriate for this study. O Ho: HS 280 H: H > 280 O Ho: H 2 280 H:u< 280 O Ho: H = 280 Ha: u + 280 Ho: 4 > 280 Ha: uS 280 Ho: H < 280 "a, μ 280 (b) Comment on the conclusion when H, cannot be rejected. O There is not enough evidence to conclude that the new method reduces costs. Management should consider implementing the new method. O There is enough evidence to conclude that the new method reduces costs. Management should not consider implementing the new method. O There is not enough evidence to conclude that the new method reduces costs. Management should not consider implementing the new method. O There is enough evidence to conclude that the new method reduces costs. Management should consider implementing the new method. (c) Comment on the conclusion when H. can be rejected. O There is not enough evidence to conclude that the new method reduces costs. Management should consider implementing the new method. O There is enough evidence to conclude that the new method reduces costs. Management should not consider implementing the new method. O There is not enough evidence to conclude that the new method reduces costs. Management should not consider implementing the new method. O There is enough evidence to conclude that the new method reduces costs. Management should consider implementing the new method.

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Because of high production-changeover time and costs, a director of manufacturing must convince management that a proposed manufacturing method reduces costs before the new method can be
implemented. The current production method operates with a mean cost of $280 per hour. A research study will measure the cost of the new method over a sample production period.
(a) Develop the null and alternative hypotheses most appropriate for this study.
Но: и 280
Ha: u > 280
Ho: H 2 280
Ha: u < 280
Но: и 3 280
H: u + 280
a
Но: и> 280
H: us 280
a
Но: и < 280
На: и 2 280
(b) Comment on the conclusion when H cannot be rejected.
There is not enough evidence to conclude that the new method reduces costs. Management should consider implementing the new method.
There is enough evidence to conclude that the new method reduces costs. Management should not consider implementing the new method.
There is not enough evidence to conclude that the new method reduces costs. Management should not consider implementing the new method.
There is enough evidence to conclude that the new method reduces costs. Management should consider implementing the new method.
(c) Comment on the conclusion when H, can be rejected.
There is not enough evidence to conclude that the new method reduces costs. Management should consider implementing the new method.
There is enough evidence to conclude that the new method reduces costs. Management should not consider implementing the new method.
There is not enough evidence to conclude that the new method reduces costs. Management should not consider implementing the new method.
There is enough evidence to conclude that the new method reduces costs. Management should consider implementing the new method.
Transcribed Image Text:Because of high production-changeover time and costs, a director of manufacturing must convince management that a proposed manufacturing method reduces costs before the new method can be implemented. The current production method operates with a mean cost of $280 per hour. A research study will measure the cost of the new method over a sample production period. (a) Develop the null and alternative hypotheses most appropriate for this study. Но: и 280 Ha: u > 280 Ho: H 2 280 Ha: u < 280 Но: и 3 280 H: u + 280 a Но: и> 280 H: us 280 a Но: и < 280 На: и 2 280 (b) Comment on the conclusion when H cannot be rejected. There is not enough evidence to conclude that the new method reduces costs. Management should consider implementing the new method. There is enough evidence to conclude that the new method reduces costs. Management should not consider implementing the new method. There is not enough evidence to conclude that the new method reduces costs. Management should not consider implementing the new method. There is enough evidence to conclude that the new method reduces costs. Management should consider implementing the new method. (c) Comment on the conclusion when H, can be rejected. There is not enough evidence to conclude that the new method reduces costs. Management should consider implementing the new method. There is enough evidence to conclude that the new method reduces costs. Management should not consider implementing the new method. There is not enough evidence to conclude that the new method reduces costs. Management should not consider implementing the new method. There is enough evidence to conclude that the new method reduces costs. Management should consider implementing the new method.
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