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10/08/2020 Client: srikanthkumar Deadline: 3 days

 


Hypothesis testing is used in business to test assumptions and theories. These assumptions are tested against evidence provided by actual, observed data. A statistical hypothesis is a statement about the value of a population parameter that we are interested in. Hypothesis testing is a process followed to arrive at a decision between 2 competing, mutually exclusive, collective exhaustive statements about the parameter’s value.


Consider the following scenario: An industrial seller of grass seeds packages its product in 50-pound bags. A customer has recently filed a complained alleging that the bags are underfilled. A production manager randomly samples a batch and measures the following weights:


Weight, (lbs)


45.6     49.5


47.7     46.7


47.6     48.8


50.5     48.6


50.2     51.5


46.9     50.2


47.8     49.9


49.3     49.8


53.1     49.3


49.5     50.1


To determine whether the bags are indeed being underfilled by the machinery, the manager must conduct a test of mean with a significance level α = 0.05.


In a minimum of 175 words, respond to the following:



  • State appropriate null (Ho) and alternative (H1) hypotheses.

  • What is the critical value if we work with a significant level α = 0.05?

  • What is the decision rule?

  • Calculate the test statistic.

  • Are the bags indeed being underfilled?

  • Should machinery be recalibrated?

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