A manufacturer of chocolate chips would like to know whether its bag filling machine works correctly at the 425 gram setting. It is believed that the machine is underfilling the bags. A 23 bag sample had a mean of 417 grams with a standard deviation of 28. A level of significance of 0.01 will be used. Assume the population distribution is approximately normal. Determine the decision rule for rejecting the null hypothesis. Round your answer to three decimal places.
Solution :
Given that,
Population mean = = 425
Sample mean = = 417
Sample standard deviation = s = 28
Sample size = n = 23
Level of significance = = 0.01
This is a two tailed test.
The null and alternative hypothesis is,
Ho: 425
Ha: 425
The test statistics,
t =( - )/ (s /n)
= ( 417 - 425 ) / ( 28 / 23 )
= -1.37
Critical value of the significance level is α = 0.01, and the critical value for a two-tailed test is
= 2.819
Decision rule is,
| t | > 2.819
Since it is observed that |t| = 1.37 < = 2.819, it is then concluded that the null hypothesis is not rejected.
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