In: Statistics and Probability
A soil distributor sells fertilizer in 10 kg bags. A customer feels that the distributor sells underweight bags. To support his hunch, he purchases 8 bags of soil. They have an average weight of 9.75 kg with standard deviation 0.7 kg. Does the customer have a case against the distributor? Test using α = 0.05.
Solution :
1) The null and alternative hypotheses would be as follows:
kg
kg
Test statisic :
To test the hypothesis the most appropriate test would be one sample t-test. The test statistic is given as follows:
Where, x̅ is sample mean, μ is hypothesized value of population mean under H0, s is sample standard deviation and n is sample size.
We have, x̅ = 9.75 kg, μ = 10 kg, s = 0.7 kg, n = 8
The value of the test statistic is -1.0102.
P - value :
Since, our test is left-tailed test, therefore we shall obtain left-tailed p-value for the test statistic. The left-tailed p-value is given as follows :
p-value = P(T < t)
p-value = P(T < -1.0102)
p-value = 0.1730
The p-value is 0.1730.
Significance level (α) = 0.05
(0.1730 > 0.05)
Since, p-value is greater than the significance level of 0.05, therefore we shall be fail to reject the null hypothesis (H0) at 0.05 significance level.
Conclusion : At 0.05 significance level, there is not sufficient evidence to conclude that the distributor sells underweight bags.
Hence, customer does not have a case against the distributor.
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