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The management of White Industries is considering a new method of assembling its golf cart.
The present method requires 42.3 minutes, on the average, to assemble a cart. The mean assembly
time for a random sample of 24 carts, using the new method, was 40.6 minutes, and the standard
deviation of the sample was 2.7 minutes. Using the .10 level of significance, can we
conclude that the assembly time using the new method is faster?

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Solution Summary

The management of White Industries is considering a new method of assembling its golf cart.
The present method requires 42.3 minutes, on the average, to assemble a cart. The mean assembly
time for a random sample of 24 carts, using the new method, was 40.6 minutes, and the standard
deviation of the sample was 2.7 minutes. Using the .10 level of significance, can we
conclude that the assembly time using the new method is faster?

Solution Preview

We can use a t test for the question:
Ho: M = 42.3
Ha: M < 42.3
Calculate Standard Error of the sampling:
SE= ...

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