Chad Williams sat back in his airline seat to enjoy the hour-longflight between Los Angeles and Oakland, California. The hour would give him time to reflect on his upcoming tripto Australiaandtheworkhehadbeen doingthepastweekinLos Angeles.

Chad is one man on a six-person crew employed by the NationalOil Company to literally walk the Earth searching for oil. His college degrees in geology and petroleum engineering landed him the job with National, but he never dreamed he would be doing the excitingworkhenowdoes.Chadandhiscrewspentseveral months in special locations around the world using highly sensitive electronic equipment for oil exploration.

The upcoming trip to Australia is one that Chad has been looking forward to since it was announced that his crew would be going there to search the Outback for oil. In preparation for the trip, thecrew has been in Los Angeles at the National's engineering research

facilityworkingonsomenewequipmentthatwillbeusedinAustralia.

Chad's thoughts centered on the problem he was having with athe particular component part on the new equipment. The specifications called for 200 of the components, with each having a diameter of between 0.15 and 0.18 inch. The only available supplier ofthe component manufactures the components in New Jersey tospecifications calling for normally distributed output, with a meanof 0.16 inch and a standard deviation of 0.02 inch.

Chad faces two problems. First, he is unsure that the supplier actually does produce parts with a mean of 0.16 inches and a standard deviation of 0.02 inch according to a normal distribution. Second, if the parts are made to specifications, he needs to determinehow many components to purchase so that he receives enough acceptable components to make two oil exploration devices.

The supplier has sent Chad the following data for 330 randomly selected components. Chad believes that the supplier is honest and that he can rely on the data.

ChadneedstohaveareportreadyforMondayindicatingwhether he believes the supplier delivers at its stated specificationsand, if so, how many of the components National should order tohave enough acceptable components to outfit two oil explorationdevices.

Diameter (Inch) Frequency

Under 0.14 5

0.14 and under 0.15 70

0.15 and under 0.16 90

0.16 and under 0.17 105

0.17 and under 0.18 50

Over 0.18 10

Total 330

Required Tasks:

1. State the problems faced by Chad Williams.

2. Identify the statistical test Chad can use to determine whetherthe supplier's claim is true.

3. State the null and alternative hypotheses for the test todetermine whether the supplier's claim is true.

4. Assuming that the supplier produces output whose diameteris normally distributed with a mean of 0.16 inch and the standard deviation of 0.02 inch, determine the expectedfrequencies that Chad would expect to see in a sample of 330components.

5. Based on the observed and expected frequencies, calculatethe appropriate test statistic.

6. Calculate the critical value of the test statistic. Select an alpha value.

7. State a conclusion. Do the sample data support the supplier'sclaim with respect to the specifications of the componentparts?

8. Provide a short report that summarizes your analysis andconclusion.