10. When it is operating properly, a chemical plant has a mean daily pro- ductio

Question

10. When it is operating properly, a chemical plant has a mean daily pro- duction of 740 tons. The output, which is measured on a random sample of size n 60, yielded a sample mean of 715 tons/day and a sample standard deviation of 240 tons/day. Let represent the mean daily output of the plant. An engineer tests: Ho : 740 versus H. 740. Find the p-value. Do you believe it is plausible that the plant is operating properly or are you convinced that the plant is not operating properly? Use = 5%. A) p-value = 0.4180. The plant is operating properly. B) p-value = 0.0458. The plant is not operating properly. C) p-value = 0.4180. The plant is not operating properly. D) p-value = 0.0458. The plant is operating properly. E) p-value 0.0029. The plant is operating properly.

Explanation / Answer

Z score

= 715-740/(240/sqrt(60))

= -0.807

p value = 2 * p [Z < -0.807] = 0.4180

since p value = 0.4180 > 0.05, then reject H0

So answer is option 'A'

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