One problem facing the manager of maintenance departments is when to change the bulbs in streetlamps. If bulbs are changed only when they burn out, it is quite costly to send crews out to change only one bulb at a time. This method also requires someone to report the problem and, in the meantime, the light is off. If each bulb lasts approximately the same amount of time, they can all be replaced periodically, producing significant cost savings in maintenance. Suppose that a financial analysis of the lights at Yankee Stadium has concluded that it will pay to replace all of the light bulbs at the same time if the variance of the lives of the bulbs is less than 200 hours2. The lengths of life of the last 100 bulbs were recorded. What conclusion can be drawn from these data? Use a 5% significance level.

  • CreatedFebruary 03, 2015
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