Question
Walzon recently made changes to its inventory management and delivery systems. Walzon wants to know whether...
Walzon recently made changes to its inventory management and delivery systems. Walzon wants to know whether these changes have reduced mean delivery time (number of hours from placing an order to receiving the item). Walzon wants to test the null hypothesis that mean delivery time is at least 37 hours against the alternative hypothesis that mean delivery time is less than 37 hours. Assume that delivery times are approximately normally distributed, with a known standard deviation of 8 hours. A random sample of 64 observations will be used to conduct the hypothesis test.
Walzon decides to use a critical value of 35 in the hypothesis test. Using this critical value, what is the probability Ho will be rejected if u = 37? Four decimals
Continued. The probability you just calculated is LEVEL OF SIGNIFICANCE (a) PROBABILITY OF TYPE II ERROR (B) POWER
Answers
Null n=64 Let X be the sandom variable representing the changes in the inventory management & delievery system Hypothesis :- H: M737 hours Alleanétie H M 237 hows Rejection Rule: X2 35 Tx=8 P[ rejecting Ho l Ho is true] = x= level of Significance X235 / H=31 x = P(X-47 X-435-4 P/ 2 > 35-37 • P/ 2 > -0.25] P(z 20.25 level of ligni fecanse, A=0.59871 PE 0.59874 # Hope you Understood it Please give a thumbs up, I really need it. All the best
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