Question

Problem 1: A company claims that its new low fat hot dog averages less than 180 calories. The Federal Drug Administration (FDA) wants to check if this claim is true or whether the company is misrepresenting its product on the market. To make this analysis, you, the market researcher at FDA, take a random sample of 100 randomly selected hot dogs, and find that the sample mean is 177 calories and the sample standard deviation is 10 calories.

1. What are the null and alternate hypotheses you set up to determine if the claim is true or not? (1 points)
2. Is the company’s claim true at the 95% level of significance? Make sure you explain it in English, rather than only show a number. (2 points)
3. Assuming that the data follows a normal distribution, clearly draw the distribution of calories of hot dogs, clearly mark the average and the standard deviation, and clearly show whether your finding falls in the acceptance or rejections region. (2 points)

Answer 1