Reference no: EM132634119

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:

Question 1: State appropriate null (Ho) and alternative (H1) hypotheses.

Question 2: What is the critical value if we work with a significant level α = 0.05?

Question 3: What is the decision rule?

Question 4: Calculate the test statistic.

Question 5: Are the bags indeed being underfilled?

Question 6: Should machinery be recalibrated?