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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     49.547.7     46.747.6     48.850.5     48.650.2     51.546.9     50.247.8     49.949.3     49.853.1     49.349.5     50.1To 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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