In: Statistics and Probability
A manufacturing company claims that its machines dispense, on average, 7 ounces per cup with a standard deviation of 0.15 ounces. A consumer is skeptical of this claim, believing that the mean amount dispensed is less than 7 ounces. A sample of size 100 is chosen, which yields the average amount per cup: 6.6 ounces, what conclusions can be drawn? State the null and alternative hypotheses, and compute the P–value to justify your answer.
Here, we conduct Z-test for one population mean as :
Hence, there is enough evidence to conclude that the mean amount dispensed is less than 7 ounces as P-value = 0