Test the hypothesis that new machine should be introduced

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Question: An efficiency expert claims that by introducing a new type of machinery into a production process he can decrease substantially the time required for production. Because of the expense involved in maintenance of the machines, management feels that unless the production time can be decreased by at least 8.0% they cannot afford to introduce the process. Six resulting experiments show that the time for production is decreased by 8.4% with standard deviation of 0.32%. Using a level of significance of 0.05, test the hypothesis that the new machine should be introduced.

Reference no: EM131754658

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