Week 7 Business Statistic

 Hypothesis Testing

The Lazer Company has a contract to produce a part for Boeing Corporation that must have an average diameter of 6 inches and a standard deviation of 0.10 inches. The Lazer Company has developed a process that will meet the specifications concerning the standard deviation, but it is still trying to meet the mean specifications. A test run (considered a random sample) of parts was produced, and the company wishes to determine whether this latest process that produced the sample will produce parts meeting the requirement of an average diameter equal to 6 inches. 
Use Excel to:

1. Construct the appropriate null and alternative hypotheses with correct parameters. 
2. Develop the decision rule assuming that the sample size is 200 parts and the significance level is 0.01.
3. In a Word document:
   

• Recommend what the Lazer Company should conclude if the sample means diameter for the 200 parts is 6.03 inches.
• Submit your recommendations in a Word document and attach your Excel file.