A producer of various kinds of batteries has been producing


A producer of various kinds of batteries has been producing "D" size batteries with a life expectancy of 87 hours. Due to an improved production process, management believes that there has been an increase in the life expectancy of their "D" size batteries. A sample of 36 batteries showed an average life of 88.5 hours. Assume from past information that it is known that the standard deviation of the population is 9 hours.

a. Give the null and the alternative hypotheses.

b. Compute the test statistic.

c. At 99% confidence using the critical value approach, test management's belief.

d. What is the p-value associated with the sample results? What is your conclusion based on the p-value?

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Business Economics: A producer of various kinds of batteries has been producing
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