(a) What is the level of significance? State the null and alternate hypotheses. Will do you use a left-tailed, right-tailed, or two-tailed test?(b) What sampling distribution will you use? Explain the rationale for your choice of the sampling distribution. What is the value of the sample test statistic?(c) Find (or estimate) the P-value. Sketch the sampling distribution and show the the area corresponding to the P-value.(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level a?(e) State your conclusion in the context of the application.
Let ? be a random variable that represents assembly times forthe Ford Taurus. The Wall Street Journal reported that the average assembly timeis u = 36 hours. A modification to the assembly procedure has been made.Experience with this new method indicates that o = 1.2 hours. It is thought thatthe average assembly time may be reduced by this modification. A random sampleof 49 new Ford Taurus automobiles coming off the assembly line showed theaverage assembly time of the new method to be x= 38.5 hours. Doesthis indicatethat the average assembly time has been increased? Use a = 0.05.
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