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In: Economics

A machine in a Dairy of a milk supplier is set to fill milk in one-litre...

A machine in a Dairy of a milk supplier is set to fill milk in one-litre pouches. The amount of
milk per pouches is normally distributed with a standard deviation of 25 ml. Recently the
engineering department of the company has reset the machine aiming to reduce the variability.
After resetting, a sample of 12 pouches is taken and the standard deviation has been found to be

20 ml. Do you think this evidence is sufficient to conclude that the engineering department has
been successful? Test the hypothesis using α=0.05. Write all the assumptions for the test.

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