The management of a soft drink company is interested in determining whether the proper amount of soft drink has been placed in 1-liter bottles at the local bottling plant. The bottling plant has informed the management that the population standard deviation for 1-liter bottles is 0.025 liter. A random sample of 100 1-liter bottles selected from this bottling plant indicates a sample mean of 0.995 liters. Use a one-sample hypothesis test to decide whether the mean amount in the bottles is different from 1.0 liters. Use a 0.05 level of significance.   State the null and alternative hypothesis for this problem. Determine the sample test statistic value for this problem. Determine the critical test statistic value for this problem. What is your statistical decision for this problem?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
icon
Concept explainers
Question

The management of a soft drink company is interested in determining whether the proper amount of soft drink has been placed in 1-liter bottles at the local bottling plant. The bottling plant has informed the management that the population standard deviation for 1-liter bottles is 0.025 liter. A random sample of 100 1-liter bottles selected from this bottling plant indicates a sample mean of 0.995 liters. Use a one-sample hypothesis test to decide whether the mean amount in the bottles is different from 1.0 liters. Use a 0.05 level of significance.

 

  1. State the null and alternative hypothesis for this problem.
  2. Determine the sample test statistic value for this problem.
  3. Determine the critical test statistic value for this problem.
  4. What is your statistical decision for this problem?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Deviation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education