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Independent sample t test for comparing two means

A firm is studying the production times for two production methods. The firm is satisfied with production method A and is prepared to continue using it if the mean delivery time is the same as or less than for production method B. However, if the firm finds that the mean delivery time for method B is less than that for method A, it will begin using method B.

What are the null and alternative hypotheses?

Assume that independent samples show the following delivery time characteristics for the two production methods.

Method A
Sample mean = 45 days
S1 = 4 days

Method B
n = 40
Sample mean = 13.5 days
S2 = 4 days

With a = .02, what is your conclusion for the hypotheses from part a? (Show your work.)

What action do you recommend regarding selection of a production method?

Solution Summary

The solution provides step by step method for the calculation of test statistic for independent sample t test. Formula for the calculation and Interpretations of the results are also included.