In building an arena, steel bars with a mean ultimate tensile strength of 400 Megapascal (MPa) with a variance of 81 MPa were delivered by the manufacturer. The project engineer tested 50 steel bars and found out that the mean ultimate tensile strength is 390 MPa. The decision for the extension of the contract with the manufacturer depends on the engineer. Test the hypothesis whether or not there is no significant difference between the two means using a two-tailed test with α = 0.01.
What are the appropriate hypotheses for the two-tailed test?
What is the test statistic to be used and the reasons for its selection?
What is the critical value c?
What is the value of the test statistic or the computed value?
Formulate a conclusion about the given situation.
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