The manufacturer is considering adopting a new process to reduce

The manufacturer is considering adopting a new process to reduce the variability in the thickness of coating. It is estimated that the additional cost for this improvement is $0.03 per linear meter. The annual production is 10,000 reels. Each reel has 200 m of tape. A random sample of size 8 from the new process yielded the following thickness (in millimeters): 0.0051, 0.0048, 0.0049, 0.0052, 0.0052, 0.0051, 0.0050, and 0.0049. Is it cost-effective to use the new process? What is the annual savings or loss?

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