Statement of a problem № m40835


Brandon Outdoor Advertising supplies neon signs to retail stores. A major complaint from its clients is that letters in the signs can burn out and leave the signs looking silly, depending on which letters stop working. The primary cause of neon letters not working is the failure of the starter unit attached to each letter. Starter units fail primarily based on turn-on/turn-off cycles. The present unit bought by Brandon averages 1,000 cycles before failure. A new manufacturer has approached Brandon claiming to have a model that is superior to the current unit. Brandon is skeptical but agrees to sample 50 starter units. It says it will buy from the new supplier if the sample results indicate the new unit is better. The sample of 50 gives the following values: Sample mean = 1,010 cycles Sample standard deviation = 48 cycles Would you recommend changing suppliers?

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