A manufacturer of I-beams is considering a new, more expensive supplier of steel. The specification requires that each component hold 500 pounds or more. This new supplier would be hired only if the company can be highly confident that quality will be improved. Historical records show that the conformance rate for the current suppler is 0.9917. To evaluate quality for the new supplier, 28 subgroups of 3 parts each are collected. Xbar/S control charts indicate process stability and a histogram shows that the process is normal. The data show an average of 728.0 pounds and a standard deviation of 92.2 pounds. Based on this analysis, should the new supplier be hired?

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To determine whether the new supplier should be hired we need to perform a hypothesis test to compar... View the full answer