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    Hypothesis Testing

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    Durable Products, Inc., has received a bid from a foreign supplier to fill the company's needs for additional mineral solution. Durable's current supplier provides material that is, on average, 99% pure. Sixteen samples provided by the foreign supplier have an average purity of 98%, with a standard deviation of 1%.

    A. Calculate the 95% confidence interval within which you would expect to find the true mean purity level for solution provided by the foreign supplier.

    B. Is it likely that solution provided by the foreign supplier is typical of the purity level provided by Durable's current supplier? Explain why or why not.

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    Solution Preview

    (a) Sample size = 16

    Degrees of freedom = 15

    t- score for 15 degrees of freedom and 95% ...

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