94%(34)32 out of 34 people found this document helpful
This preview shows page 1 - 2 out of 3 pages.
1Hypothesis testing is used in business to test assumptions and theories. These assumptions aretested against evidence provided by actual, observed data. A statistical hypothesis is a statementabout the value of a population parameter that we are interested in. Hypothesis testing is a processfollowed to arrive at a decision between 2 competing, mutually exclusive, collective exhaustivestatements about the parameter’s value.Consider the following scenario: An industrial seller of grass seeds packages its product in 50-poundbags. A customer has recently filed a complained alleging that the bags are underfilled. A productionmanager randomly samples a batch and measures the following weights:Weight, (lbs)45.6 49.547.7 46.747.6 48.850.5 48.650.2 51.546.9 50.247.8 49.949.3 49.853.1 49.349.5 50.1To determine whether the bags are indeed being underfilled by the machinery, the manager mustconduct a test of mean with a significance level α = 0.05.In a minimum of 175 words, respond to the following:State appropriate null (Ho) and alternative (H1) hypotheses.