Assignment: Hypothesis Testing
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:
i. State appropriate null (Ho) and alternative (H1) hypotheses.
ii. What is the critical value if we work with a significant level α = 0.05?
iii. What is the decision rule?
iv. Calculate the test statistic.
v. Are the bags indeed being underfilled?
vi. Should machinery be recalibrated?
Format your assignment according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.