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A producer of various kinds of batteries has been producing "D" size batteries with a life...

A producer of various kinds of batteries has been producing "D" size batteries with a life expectancy of 87 hours. Due to an improved production process, management believes that there has been an increase in the life expectancy of their "D" size batteries. A sample of 25 batteries showed an average life of 89.5 hours. It is known that the standard deviation of the population is 10 hours.

a.

Give the null and the alternative hypotheses.

b.

Compute the test statistic.

c.

At the 1% level of significance using the critical value approach, test management's belief. (Note: Here, the critical value of 1% level of significance is 2.33)

d.

What is the p-value associated with the sample results?

e.

What is your conclusion based on the p-value from your answer in (d) using α = .01?  (i.e., the 1% level of significance)
f. What is your conclusion based on the p-value  from your answer in (d) using α = .15 (i.e., the 15% level of significance)?
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