Testing Hypotheses: One Sample Tests

The data-processing department at a large life insurance company has installed new color video display terminals to replace the monochrome units it previously used. The 95 opera- tors trained to use the new machines averaged 7.2 hours before achieving a satisfactory level of performance. Their sample variance was 16.2 squared hours. Long experience with operators on the old monochrome terminals showed that they averaged 8.1 hours on the machines before their performances were satisfactory. At the 0.01 significance level, should the supervisor of the department conclude that the new terminals are easier to learn to operate?

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