Compute the power of the test if the true mean diameter is

Assignment Help Finance Basics
Reference no: EM13576991

A bearing used in an automotive application is suppose to have a nominal inside diameter of 1.5 inches. A random sample of 25 bearings is selected and the average inside diameter of these bearings is 1.4975 inches. Bearing diameter is known to be normally distributed with standard deviation s = 0.01 inch.

(a) Test the hypotheses H0: µ = 1.5 versus H1: µ = 1.5 using a = 0.01.

(b) Compute the power of the test if the true mean diameter is 1.495 inches.

(c) What sample size would be required to detect a true mean diameter as low as 1.495 inches if we wanted the power of the test to be at least 0.9?

(d) Explain how the question in part (a) could be answered by constructing a two-sided confidence interval on the mean diameter.

Reference no: EM13576991

Questions Cloud

A soft-drink dispensing machine is said to be out of : a soft-drink dispensing machine is said to be out of control if the variance of the contents exceeds 1.15 deciliters.
When determining the sample size needed to achieve a : when determining the sample size needed to achieve a particular error estimate you need to know sigma. what are two
If a can containing 500 nuts is selected at random from : if a can containing 500 nuts is selected at random from each of three different distributors of mixed nuts and there
Would we have reason to believe that the proportion of rats : in a controlled laboratory experiment scientists at the university of minnesota discovered that 25 of a certain strain
Compute the power of the test if the true mean diameter is : a bearing used in an automotive application is suppose to have a nominal inside diameter of 1.5 inches. a random sample
If each possible committee arrangement is equally likely : three committees of 5 people each will be formed from a group of 15 people where each person is allowed to be on
A consumer organization estimates that over a 1 year period : a consumer organization estimates that over a 1 year period 18 of cars will need to be repaired once 7 will need to be
What are some of the significant problems that transgender : what are some of the significant problems that transgender suspects face in the criminal justice system?how have the
In may overhead was overapplied by 490 the company adjusts : nbspuxmaiz corporation had only one job in process during may-job x32z-and had no finished goods inventory on may 1.

Reviews

Write a Review

Finance Basics Questions & Answers

  What will be the cost of the newly issued common shares

You have advised the firm that flotation costs will be 8% per share. What will be the cost of the newly issued common shares?

  Create a hedge against rising interest rates

However, the firm's financial manager is concerned that interest rates will climb even higher in coming months.

  What is the company return on equity

Martinez inc has a total debt ratio of .56 total debt if $316,000 and net income of $38,500. What's the company return on equity?

  Smith company presents the following data for 2006

smith company presents the following data for 2006. inventories beginning of year 310150 inventories end of year 340469

  Your finance text book sold 49000 copies in its first year

your finance text book sold 49000 copies in its first year. the publishing company expects the sales to grow at a rate

  Determine new contribution margin

Har Company sold 5,000 units for a prie of $50 per unit and had the following data, If the sales price per unit were to increase by 10%,

  Determine proportion of portfolio invested in stock

Nico have hundred shares of stock X which has a price of $12 per share and 200 shares of stock Y which has a price of $3 per share. Determine proportion of Nico's portfolio invested in stock X?

  Describe what is reported on asset side of a cash flow

Describe what would be reported on the asset side of a cash flow based balance sheet versus the asset side of an accrual accounting balance sheet.

  When we observe the capital structure of many firms we

when we observe the capital structure of many firms we find that they tend to utilize lower levels of debt than that

  Compute the company stock price

Corporation x's stock trades at $90 a share. the company is contemplating a 3 for 2 stock split. Suppose that the stock split will have no effect on the market value of its equity.

  What is the afn for the coming year

Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions.

  Explain how much would linda a receive in initial loan

financing lindas educationat age 19 linda sayers is in the middle of her second year of studies at a community college

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd