Suppose that a sample of size 25 from Exercise 15 yielded s ¼ 0:0037. Should the machine be adjusted? Exercise 15 A production line in a certain factory puts out washers with an average inside...

Suppose that a sample of size 25 from Exercise 15 yielded s ¼ 0:0037. Should the machine be adjusted?

Exercise 15

A production line in a certain factory puts out washers with an average inside diameter of 0.10 in. A quality control procedure that requires the line to be shut down and adjusted when the standard deviation of inside diameters of washers exceeds 0.002 in. has been established. Discuss the quality control procedure relative to the value of the significance level, type I and type II errors, sample size, and cost of the adjustment.