In: Statistics and Probability
Bottles of Langdon Falls water should contain, on average, 1600 ounces of liquid— no more and no less. You select a sample of 52 bottles that has a mean of 1595.91 ounces per bottle. Assume that the population standard deviation is known to be 10 ounces. Can you reject a null hypothesis that the population mean is 1600 ounces for the population of Langdon Falls bottles? Use a significance level of 1%.
Please state the critical values you would use to make the decision.
Please state the test statistic that you compute for this sample.
Please state the p-value that you compute for this sample.
Please state whether or not you would reject the null hypothesis.
Solution:
Given ,
n = 52
Hypothesis are
Now , observe that ,there is
sign in H1. So , the test is two tailed.
So there are two critical values.
i.e.
i.e.
2.576 (Use z table to find this value)
Critical values are -2.576 and 2.576
The test statistic z is given by
= -2.95
Since |z| = 2.95 is greater than |2.576| , we reject the null hypothesis.
For two tailed test :
p value = 2 * P(Z < -z)
= 2 * P(Z < -2.95)
= 2 * 0.0016
= 0.0032
Since the p value is less than
= 0.01 , we reject the null hypothesis.
Since |z| = 2.95 is greater than |2.576| , we reject the null hypothesis