A manufacturer of potato chips would like to know whether its bag filling machine works correctly at the 434 gram setting. It is believed that the machine is underfilling the bags. A 41 bag sample had a mean of 433 grams. Assume the population standard deviation is known to be 23. Is there sufficient evidence at the 0.05 level that the bags are underfilled?
Hypotheses:
Ho: = 434
Ha: < 434 [Left Tailed Test]
Critical value at 0.05 significance level = -1.645
Decision rule: Reject Ho if z < -1.645
Test statistic
z = (433 - 434)/(23/sqrt(41))
z = -0.28
Since this value is not less than -1.645, it doesn't fall in rejection region and hence, we fail to reject Ho. Therefore,
We do not have sufficient evidence to conclude that the bags are underfilled.
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