In: Statistics and Probability
A pharmaceutical manufacturer is concerned that the impurity concentration in pills should be less than or equal to 3% on average. It is known that, from a particular production process, impurity concentrations follow a normal distribution with standard deviation of 0.4%. A random sample from a production process was checked, and the sample mean impurity concentration was found to be 3.07%. A) Test the concern of manufacturer at 5% level with test statistics as well as B) find probability value and interpret please. C) Interpret the results for managers