A chemical company alleged that the average weight of the bag of chemical is 30kgs. with a standard deviation of 1.1 kgs. A sample of 26 bags was taken and revealed a mean weight of 28.9 kgs. Shall we accept the allegation of the chemical company? Use .01 level of significance
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 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 30, at the significance level.
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