Many older homes have electrical systems that use fuses rather than circuit brea

Question

Many older homes have electrical systems that use fuses rather than circuit breakers. A manufacturer of 40-amp fuses wants to make sure that the mean amperage at which its fuses burn out is in fact 40. If the mean amperage is lower than 40, customers will complain because the fuses require replacement too often. If the mean amperage is higher than 40, the manufacturer might be liable for damage to an electrical system due to fuse malfunction. To verify the amperage of the fuses, a sample of fuses is to be selected and inspected. If a hypothesis test were to be performed on the resulting data, what null and alternative hypotheses would be of interest to the manufacturer?

Explanation / Answer

As we can see, the fuses need to strictly have a mean of 40, as a very low or very high mean will both have disadvantages.

Hence, we do a two tailed test,

Ho: u = 40 A
Ha: u =/= 40 A [ANSWER]

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