Hypothesis Testing & Variance Research Paper Example | Topics and Well Written Essays - 250 words

Hypothesis Testing & Variance - Research Paper Example The critical value is 1.997138 test statistic is -14.2189. Since the calculation of the confidence level failed to include 5.2, the null hypothesis would be rejected H0: ÃŽ ¼= 5.2. Nevertheless the decision is a close one since it had the two-tailed test of hypothesis, as the minimum confidence level limit almost included 5.2. Application for managers.Even though, the sample mean 5.078788 appears to be extremely close to 5.2, the mean has a more by one standard deviation from the mean desired. This problem shows that a small difference in mean could be so crucial. It all relies on n and ÏÆ'. This means that the standard error forms the test statistic’s denominator. In this regard, there is a high chance of precision in the process of manufacturing (ÏÆ' = 0.72 is extremely small) the standard error and available variation is relatively small. The small, mean difference may not be identified to the customers. Since the calculation of the confidence level failed to include 5.4, the null hypothesis would be rejected H0: ÃŽ ¼= 5.4. Nevertheless the decision is a close one since it had the two-tailed test of hypothesis, as the minimum confidence level limit almost included 5.4.  Application for managers.Interpretation: Despite The fact that, the sample means 5.386364appears to be extremely close to 5.4, the mean has an addition of two standard deviations from the mean desired. This problem shows that a small difference in the mean could be so crucial. In this regard, there is a high chance of precision in the process of manufacturing.