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QM 3523 -- Operations Management
Department of Economics & Decision Sciences
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College of Business

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Assignment Due 6/14/2000
(Click here for  previous assignments)

  1. Review (and correct as appropriate) your work on Exam 1.  Some of the material is likely to appear on Exam 2, which is scheduled for 6/20 (Thursday of next week), and you will definitely see this material also on the final exam.

  2. Review your statistics notes concerning hypothesis testing and then try to work the following  exercises:

    • A company manufactures gas vent tubes that have averaged 9.80 cm in length with a standard deviation (s) of 0.60 cm.  (Tube lengths are approximately normally distributed.)  SPC charts are to be set up for a sampling process that involves sampling 9 tubes each hour.  The purpose of these limits is to facilitate the detection of when the process becomes out of control (i.e., when the process average shifts in either direction from the value of m = 9.80 cm).  If any sample average is less than the lower control limit (LCL) or greater than the upper control limit (UCL), it will be concluded that the overall process average is no longer 9.80 cm; the process will then be adjusted.  This essentially constitutes performing a hypothesis test that is to be performed each time a sample is taken.

      • State the null and alternative hypotheses for this test. 

      • Sketch the sampling distribution for this test and indicate the rejection region(s) on the sketch.

      • What is the decision rule for this test if a level of significance (a) of 0.0028 or better is desired?

      • Suppose a sample is taken and the observed average tube length is 9.30 cm.  What is the appropriate conclusion for this test? Write your answer using a single sentence that refers to your decision rule and the calculated value of the test statistic.

    • KIVZ’s station manager is concerned about the Boise economy. She has proposed  that the overall average income for households in the area differs from the national average of $32,000. Conduct a hypothesis test to see if the data (soon to be gathered via a survey of Boise area residents) provide sufficient evidence to prove her claim at a level of significance of a = 5%.

      • State the null and alternative hypotheses for this test. 

      • Sketch the sampling distribution for this test and indicate the rejection region(s) on the sketch.

      • What is the decision rule for this test?

      • Suppose a sample of 50 households is taken and the observed average income is $37,800 with a standard deviation of $21,350.  What is the appropriate conclusion for this test?  Write your answer using a single sentence that refers to your decision rule and the calculated value of the test statistic.

  3. Resume working on learning Deming's 14 Points.

  4. Complete your reading of Chapter 5 in the text and the corresponding material in the study guide.  Work on answering the Review Questions and attempt to identify the text Exercises that involve control charting, but do not try to work those exercises yet.


This page last updated 06/13/00
Please submit any comments, corrections, etc. about this document to John Seydel

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