This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: Homework 4 (due Feb. 21) 1. A company claims that the mean bursting strength of bottles it pro duces is at least 250 psi. To test this claim a representative of a potential customer takes a sample of 20 bottles and conducts a bursting strength test. She obtains the mean bursting strength of 244.9 psi for the sample, while the sample standard deviation turns out to be equal to 9.5 psi. a) Assuming that the customer is an old one and tends to trust the manufacturer, formulate the appropriate hypothesis and test it at = 0 . 01 significance level. Should the customer believe the claim and buy a batch of these bottles? (Hint: since the customer trusts the manufacturer, he will give it the benefit of a doubt and use the < alternative hypothesis, and will buy the bottles if H is not rejected.) b) Formulate the appropriate hypothesis and test it at = 0 . 01 signifi cance level assuming that the customer is new and tends to be suspicious of the manufacturers claim. What the customers decision would be this time?the manufacturers claim....
View
Full
Document
This note was uploaded on 03/17/2008 for the course IE 121 taught by Professor Perevalov during the Spring '08 term at Lehigh University .
 Spring '08
 Perevalov

Click to edit the document details