Hypothesis Testing
Hypothesis Testing:
The Lazer Company has a contract to produce a part for Boeing Corporation that must have an average diameter of 6 inches and a standard deviation of 0.10 inch. The Lazer Company has developed a process that will meet the specifications with respect to the standard deviation, but it is still trying to meet the mean specifications. A test run (considered a random sample) of parts was produced, and the company wishes to determine whether this latest process that produced the sample will produce parts meeting the requirement of an average diameter equal to 6 inches.
Notes for Writer: Please Use Excel for Questions 1 & 2. Then Use Word Document for Question 3. Instructions are down below. Thanks.
Use Excel to:
1. Construct the appropriate null and alternative hypotheses with correct parameters.
2. Develop the decision rule assuming that the sample size is 200 parts and the significance level is 0.01.
In a Word document:
3. Recommend what the Lazer Company should conclude if the sample mean diameter for the 200 parts is 6.03 inches.
Submit your recommendations in a Word document and attach your Excel file.
Hypothesis Testing: Question 3
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Hypothesis testing refers to inferential statistics that helps a researcher make a conclusion based on a sample. Its primary objective is to determine if there is evidence in favor of a belief about a parameter or a certain claim (Emmert-Streib & Dehmer, 2019). The Boeing Corporation has contracted Lazer Company to produce a part with a mean diameter of six inches and 0.10-inch standard deviation. The Lazer Company conducted a test run where a random sample of parts was produced. They wish to establish whether the latest process will produce parts with an average diameter of six inches. Following the Central Limit Theorem, the Z-test was appropriate to test this hypothesis since the sample size is large and the population standard deviation is known (Kwak & Kim, 2017).
Z Test
Sample Size (n) = 200 parts
Sample Mean ( x) = 6.03
Population Mean (µ) = 6 inches
Population Standard Deviation (σ) = 0.10 inch
Level of Significance (α) = 0.01
The formula below was used to calculate the z-statistic
Z = x-µ σ/n = 6.03-60.1...
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