Data Analytics Question

Hypothesis testing is used in business to test assumptions and theories. These assumptions are tested against evidence provided by actual, observed data. A statistical hypothesis is a statement about the value of a population parameter that we are interested in. Hypothesis testing is a process followed to arrive at a decision between 2 competing, mutually exclusive, collective exhaustive statements about the parameter’s value. Consider the following scenario: An industrial seller of grass seeds packages its product in 50-pound bags. A customer has recently filed a complained alleging that the bags are underfilled. A production manager randomly samples a batch and measures the following weights: Weight, (lbs) 45.6 49.5 47.7 46.7 47.6 48.8 50.5 48.6 50.2 51.5 46.9 50.2 47.8 49.9 49.3 49.8 53.1 49.3 49.5 50.1 To determine whether the bags are indeed being underfilled by the machinery, the manager must conduct a test of mean with a significance level α = 0.05. In a minimum of 175 words, respond to the following: Requirements: 175 State appropriate null (Ho) and alternative (H1) hypotheses. What is the critical value if we work with a significant level α = 0.05? What is the decision rule? Calculate the tests statistic. Are the bags indeed being underfilled? Should machinery be recalibrated?

Prof. Angela


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