The manufacturer of a new product claims that his product will increase output per machine by at least 38 units per hour
A line manager adopts the product on 18 of his machines, and finds that the average increase was only 35 units per hour with a standard deviation of 12.2 units. Is there evidence to doubt the manufacturer's claim at a significance level of .10?
H0 : ? ? 38 against H1 : ? < 38
Test statistics t = (35 - 38 ) / (12.2/4.24 ) = -1.04
Reject H0 if t < -tn-1,? = -t17,0.10 = -1.333
Since t = -1.04, we fail to reject H0 at ? = 0.10. There is insufficient evidence to disprove the claim that the product will increase output per machine by 38 units per hour.
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