A manufacturer of potato chips would like to know whether its bag filling machine works correctly at the 443 gram setting. It is believed that the machine is underfilling the bags. A 44 bag sample had a mean of 437 grams. Assume the population standard deviation is known to be 23. A level of significance of 0.05 will be used. State the null and alternative hypotheses.
The null and alternative hypothesis are
H0: = 443
Ha: < 443
Test statistics
z = - / / sqrt(n)
= 437 - 443 / 23 / sqrt(44)
= -1.73
This is test statistics value.
Critical value at 0.05 level is -1.645
Since test statistics falls in rejection region, we have sufficient evidence to reject H0.
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