Discussion:
The Holland wood company manufacturers and assembles desks and other office equipment at several plants in Michigan. The weekly production of the Model A3 desk at the Grand Rapids Plant is normally distributed with a mean of 200 and a standard deviation of 16. Recently, due to market expansion, new production methods have been introduced and new employees hired. The vice president of manufacturing would like to investigate whether there has been a change in the weekly production of the Model A desk. Assume that a sample of 50 weeks of production yielded a mean of 203.5 desks. To put it another way, is the mean number of desks produced at the Grand Rapids plant different from 200 at the 0.01 significance level?
a. State the null hypothesis
b. State the alternative hypothesis
c. State the decision rule
d. Calculate the test statistic
e. Offer your conclusions