A company has a contract to supply specialized batteries to a manufacturer with a mean width of 54mm and a standard deviation of 1.5 or less with an alpha of 0.10.The company randomly tests 25 of these batteries to ensure that they are meeting the requirements of the contract.If the most recent test had a standard deviation of 1.8, what should the company do?
A)Continue production
B)Test the mean
C)Break the contract
D)Stop production to fix issues
E)Ask to revise the contract

Question

Quizplus · Accepted Answer

The company should stop production to fix issues because the standard deviation of 1.8 exceeds the contract requirement of 1.5 or less, indicating a problem with the consistency of the battery widths.

A Company Has a Contract to Supply Specialized Batteries to a Manufacturer