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To investigate an alleged unfair trade practice, the Federal Trade Commission (FTC) takes a random sample of 25 "5-ounce" candy bars from a large shipment. The mean of the sample weights is 4.85 ounces and the sample standard deviation is 0.3 ounce. If the FTC concludes that the labels overstate the weight of candy, they will take punitive action against the company producing the candy bars. The unknown (but true) mean of the shipment is denoted by m.
A. In this example, the correct formulation of the hypotheses is (pick one): ______ _____
a. H0: m ³ 5 and Ha: m < 5b. H0: m < 5 and Ha: m ³ 5c. H0: m = 5 and Ha: m ¹ 5d. H0: m ¹ 4.85 and Ha: m = 4.85e. H0: m ³ 4.85 and Ha: m < 4.85
B. The value of the test statistic for the mean m is _____________. C. Compute the P-value for this test: _______________.
What is the sample size needed to estimate a mean to within +-5 with 95% confidence if the standard deviation is assumed to be 18?
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