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The owner of a tea packing company is concerned that a new packing machine is not placing the required average of 2 grams of tea per bag. If a sample of 25 tea bags reveals a mean weight of 2.25 grams, complete the following hypothesis test in order to determine, at a significance level of 5%, whether the owner's concerns are justified.
H0: µ = 2 HA: µ ≠ 2
Assume the weight of individual tea bags is known to be normally distributed with standard deviation 0.5 grams.
A) Determine the critical value of Z or t (whichever is appropriate).
B) Determine the calculated value of Z or t (whichever is appropriate). Show brief workings.
C) Decide whether to reject, or not, the null hypothesis, briefly stating your justification for doing so.
D) State the conclusion to your hypothesis test referring specifically to the practical context in which it has been conducted.
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BOOK:Pearson's Enterprise Systems for Management, 2nd edition, 2012, by Luvai Motiwalla and Jeffrey Thompson
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