Multiple choice - A salesman enters a food-processing facility and claims that h

Dec 29th, 2014
FratBro23
Category:
Accounting
Price: $5 USD

Question description

A salesman enters a food-processing facility and claims that his new juice box filling machine can save the company money, because he is 95% confident it has less variation from the nominal setting than the company's current machine. A random sample of 25 juice boxes from the salesman's machine yields a standard deviation of 0.09 ounce. A random sample of 16 juice boxes from the company's current machine yields a standard deviation of 0.13 ounce. What can we conclude?

A

The salesman is correct. We can say with 95% confidence that his machine has less variation from the nominal setting than the company's current machine

B

The salesman may be correct. It is not possible to prove he is correct, but indications are that his machine has less variation from the nominal setting than the company's current machine

C

We cannot show that the salesman is incorrect. We cannot prove that he is wrong, but indications are that the company's machine has the same variation as the salesman's machine

D

The salesman is incorrect. We cannot say with 95% confidence that the salesman's machine has less variation from the nominal setting than the company's current machine


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