A chemical company alleged that the average weight of its bag of chemical is 50 kgs. with a standard deviation of 0.9 kg. A sample of 29 bags was taken and revealed a mean weight of 48.1 kgs. Shall we accept the allegation of the chemical company? Use a = 0.01.
The following null and alternative hypotheses need to be tested:
This corresponds to a two-tailed test, for which a z-test for one mean, with known population standard deviation will be used.
Based on the information provided, the significance level is and the critical value for a two-tailed test is
The rejection region for this two-tailed test is
The z-statistic is computed as follows:
Since it is observed that it is then concluded that the null hypothesis is rejected.
Using the P-value approach: The p-value is p and since it is concluded that the null hypothesis is rejected.
Therefore, there is enough evidence to claim that the population mean
is different than 50, at the significance level.