Posted: March 1st, 2023

The research department of an appliance manufacturing firm has developed a new bimetallic thermal sensor for its toaster.

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The research department of an appliance manufacturing firm has developed a new bimetallic thermal sensor for its toaster. The new bimetallic thermal sensor can sense the temperature of the bread and move the lever arm to activate the switch. The research department claims that the new bimetallic thermal sensor will reduce appliance returns under the one-year full warranty by 2%–6%. To determine if the claim can be supported, the testing department selects a group of the toasters manufactured with the new bimetallic thermal sensor and a group with the old thermal sensor and subjects them to a normal year’s worth of wear. Out of 250 toasters tested with the new bimetallic thermal sensor, 8 would have been returned. Seventeen would have been returned out of the 250 toasters with the old thermal sensor. As the manager of the appliance manufacturing process, use a statistical procedure to verify or refute the research department’s claim.
Instructions
1.    Summarize the problem with the appliance manufacturing firm’s toaster.
2.    Propose the statistical inference to use to solve the problem. Support your decision using a scholarly reference.
3.    Using Excel:
o    Develop a flowchart for the proposed statistical inference, including specific steps. (assumptions, point estimate, confidence interval estimate. Hypothesis testing for two population proportions {pooled estimator for overall proportion and z-Test Statistic for difference between population proportions} Justify using the textbook (page 396) why this is the appropriate method
o    Compute all statistical calculations (specify the population parameter, formulate the null and alternative hypothesis, use the significant level alpha 0.05, determine the rejection region and the critical value, compute the z-test statistics using {formula attached from slide 4}, decide to reject of fail to reject the null hypothesis, draw a conclusion: Can you verify or refute the research department’s claim?)
4.    Based on you Statistical Inference, what can you recommend to the company?
5.    Choose sources that are credible, relevant, and appropriate.

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