Hypothesis testing is used in business to test assumptions and theories. These assumptions aretested against evidence provided by actual, observed data. A statistical hypothesis is astatement about the value of a population parameter that we are interested in. Hypothesistesting is a process followed to arrive at a decision between 2 competing, mutually exclusive,collective exhaustive statements about the parameter’s value.Consider the following scenario: An industrial seller of grass seeds packages its product in 50-pound bags. A customer has recently filed a complained alleging that the bags are underfilled.A production manager 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