Discuss the below:
Q: A firm is studying the production times for two production methods. The firm is satisfied with production method A and is prepared to continue using it if the mean delivery time is the same as or less than for production method B. However, if the firm finds that the mean delivery time for method B is less than that for method A, it will begin using method B.
a. What are the null and alternative hypotheses?
Assume that independent samples show the following delivery time characteristics for the two production methods.
Method A
n=45
Sample mean = 45 days
S1 = 4 days
Method B
n = 40
Sample mean = 13.5 days
S2 = 4 days
b. With a = .02, what is your conclusion for the hypotheses from part a?
c. What action do you recommend regarding selection of a production method?