Question

1. The agent visits a poultry farm and the poultry manager provides him with samples of eggs from the farm. The agent then selects 175 eggs and weighs them. The sample average weight of the eggs is 3.68 ounces, with a standard deviation of .69 ounces. At a .005 level of significance, should he buy these eggs? (HINT: Z* = 2.576)

Answer 1

With the number of eggs at 175, the sample average at 3.869 ounces and standard deviation at 0.69 ounces, we got a p value as 0.05. Now the question that arose was whether to buy such eggs or not? The level of significance wasless than 0.5. Generally thats the level of significance which is used to decide whether to accept or reject the null hypothesis. Since p= 0.05, it means that p<0.5. This means we will reject the null hypothesis. This basically explains that there is less than 5%, in this case, o.1% chance of getting a false positive. Hence the average weightdetermined withthe values is legitimate and the eggsshould be bought.