Question

In: Statistics and Probability

Guinness Ghana Breweries limited, producers of Malta Guinness indicates on the label that the bottle contains...

Guinness Ghana Breweries limited, producers of Malta Guinness indicates on the label that the bottle contains 330ml of malt drink. A sample of 75 bottles is selected hourly and the contents weighed. Last hour a sample of 75 bottles had a mean weight of 338ml with a standard deviation of 4ml. At the 5% significance level;                                                         
i. State the null hypothesis and the alternative hypothesis.
ii. State the decision rule
iii. At the .05 significance level is the process out of control?

Solutions

Expert Solution

i) Claim: The average of the bottle contains 330ml of malt drink.
From the above claim the null hypothesis(H0) and the alternative hypothesis(H1) are as follows:
H0: µ = 330ml
H1: µ ≠ 330ml

ii) Decision rule:
1) If p-value < level of significance (α) then we reject null hypothesis
2) If p-value > level of significance (α) then we fail to reject null hypothesis.
(Note: Here I am using p-value method)

iii) Let's write the given information.
= sample mean = 338ml,
s = sample standard deviation = 4ml
μ = 330ml (from the null hypothesis).
n = sample size = 75.
Test Statistic:
Here population standard deviation(σ) is not given and we use sample standard deviation(s) instead of population standard deviation. The sample size(n = ) is small (< 30) and we need to assuming that the sample comes from the normal population, so we can used one sample t test for testing the above hypothesis.
The formula of t-test statistic is as follows:
..(1)
Plugging the above values in equation(1), we get

The test statistic = 17.321.
p-Value:
We find the value of the test statistic is = t = 17.321
For two-tailed t-test, p-value = 2*P(T > |t|)
Here we need to use technology as "Excel" to find the p-value.
The general command to find p-value for one-tailed t-test is "=TDIST(|t|,df,2)" (Here "2" for two tailed test)
df = degrees of freedom = n - 1 = 75 - 1 = 74
so p-value = "=TDIST(17.321,74,2)" ≈ 0
p-value = 0.
Since p value = 0 < 0.05 so we used first rule.
That is we reject the null hypothesis.
Decision: Reject the null hypothesis(H0).
There are sufficient evidence to conclude that the true average of the bottle contains is different than the 330ml of malt drink.
Interpretation: At the .05 significance level the process is out of control.


Related Solutions

The label on a “two liter” bottle of soft drink indicates that it is supposed to...
The label on a “two liter” bottle of soft drink indicates that it is supposed to contain 2000 milliliters (ml). However, there is some variation due to the production process; this process is known to be normally distributed with a standard deviation of 20 ml. A government inspector wants to ensure that the public is not cheated by purchasing underfilled containers. A random sample of nine containers was selected; the measurement results were: 1995, 1960, 2005, 2008, 1997, 1992, 1986,...
Unique Furniture Limited is one of the leading producers of wood furniture in Ghana and is...
Unique Furniture Limited is one of the leading producers of wood furniture in Ghana and is also well known in the housing estate industry. Its products include household furniture, office furniture and industrial furniture. In the housing estate industry, it has partnership agreements with contractors to roof houses, fix doors and windows and provide all the furniture in the estate houses and office accommodation units that are being constructed by the latter. Its unique finishings are enhanced by the modern...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT