Suppose the time from order entry until an order ships has been found to be normally...
Suppose the time from order entry until an order ships has been found to be normally distributed with a mean of 10.2 hours and a standard deviation of 1.25 hours for the northeast distribution center. The northeast distribution center redesigned the process to improve efficiency. The first 15 orders using the new process had an average time of 8.3 hours and a standard deviation of 0.72 hours.
Compared against the historical standard deviation of 1.25 hours, what is the chance the observed standard deviation of 0.72 in this sample or 15 orders is due to normal sampling variability?
Homework Answers
Let X be the time from order entry until an order ships has been found to be normally distributed with a mean of 10.2 hours and a standard deviation of 1.25 hours for the northeast distribution center.
Let Y be the first 15 orders using the new process had an average time of 8.3 hours and a standard deviation of 0.72 hours
The Standard deviation of Y event is less than the standard deviation of event X
15 orders is due to normal sampling variability
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