Springbok Earthworks is a manufacturer in a mature cyclical industry. During the most recent financial reports, its net sales averaged $30 million per year with a standard deviation of $10 million (n= 6 observations). Management claims that Springbok Earthworks performance during the most recent cycle results from new approaches and that we can dismiss profitability expectations based on its average or normalized sales of $24 million per year in prior cycles.With mas the population value of mean annual sales, formulate null and alternative hypotheses consistent with testing Springbok Earthwork’s management’s claim.Assuming that Springbok Earthworks sales is at least approximately normally distributed, identify the appropriate test statistic.If this were a two tailed Z-test, with 90% confidence what would be your rejection point or critical value?Assuming a critical value of 1.15 determine whether or not to reject the null hypothesis at the 0.05 significance level.

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Description: Springbok Earthworks is a manufacturer in a mature cyclical industry. During the most recent financial reports, its net sales averaged $30 million per year with a standard deviation of $10 million (n= 6 observations). Management claims that Springbok

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MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

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Springbok Earthworks is a manufacturer in a mature cyclical industry. During the most recent financial reports, its net sales averaged $30 million per year with a standard deviation of $10 million (n= 6 observations). Management claims that Springbok Earthworks performance during the most recent cycle results from new approaches and that we can dismiss profitability expectations based on its average or normalized sales of $24 million per year in prior cycles.

With mas the population value of mean annual sales, formulate null and alternative hypotheses consistent with testing Springbok Earthwork’s management’s claim.
Assuming that Springbok Earthworks sales is at least approximately normally distributed, identify the appropriate test statistic.
If this were a two tailed Z-test, with 90% confidence what would be your rejection point or critical value?
Assuming a critical value of 1.15 determine whether or not to reject the null hypothesis at the 0.05 significance level.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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