SOLUTION: Please help me with this one. A potato chip company packages its potato chips into 12.0 ounce bags. You find it hard to believe that the bag contains enough potato chips to weig

Algebra ->  Algebra  -> Customizable Word Problem Solvers  -> Finance -> SOLUTION: Please help me with this one. A potato chip company packages its potato chips into 12.0 ounce bags. You find it hard to believe that the bag contains enough potato chips to weig      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com
Ad: Algebra Solved!™: algebra software solves algebra homework problems with step-by-step help!
Ad: Algebrator™ solves your algebra problems and provides step-by-step explanations!

   

Question 94839: Please help me with this one.
A potato chip company packages its potato chips into 12.0 ounce bags. You find it hard to believe that the bag contains enough potato chips to weigh 12.0 ounces and would like to make an official complaint. Before doing so, you decide to run an experiment so that you can have some confidence that the company’s claim is incorrect. Over the next several months you buy 30 bags of potato chips and weigh the contents of each one. You discover that the mean weight is 11.9 ounces with a standard deviation of 0.4 ounces. You decide that you will onlProblem
y complain if you can be 95% sure that the bags do not contain at least 12.0 ounces of potato chips. You decide to construct a hypothesis test.
Questions
A. Determine if this is a one-tailed or two-tailed test. Justify your decision.

B. State the null hypothesis and alternative hypothesis. Your null hypothesis should assume the company’s claim is correct.

C. Define the term Type I error and explain what a Type I error is in terms of this problem.

D. Define the term level of significance and identify the level of significance for this problem.

E. Calculate the test statistic as a z-score. Show all relevant work.

F. Using a standard table, you determine that the critical value is –1.645. Determine if you are able to reject the null hypothesis and explain how you reached this conclusion. (Your conclusion should include a comment relating the results to the original problem.)

Answer by stanbon(29603) About Me  (Show Source):
You can put this solution on YOUR website!
A potato chip company packages its potato chips into 12.0 ounce bags. You find it hard to believe that the bag contains enough potato chips to weigh 12.0 ounces and would like to make an official complaint. Before doing so, you decide to run an experiment so that you can have some confidence that the company’s claim is incorrect. Over the next several months you buy 30 bags of potato chips and weigh the contents of each one. You discover that the mean weight is 11.9 ounces with a standard deviation of 0.4 ounces. You decide that you will onlProblem
y complain if you can be 95% sure that the bags do not contain at least 12.0 ounces of potato chips. You decide to construct a hypothesis test.
Questions
A. Determine if this is a one-tailed or two-tailed test. Justify your decision.
One-tailed test. The counterclaim is that mu is less than 12 oz.
---------------
B. State the null hypothesis and alternative hypothesis. Your null hypothesis should assume the company’s claim is correct.
Ho: mu >=12 ; Ha: mu<12
--------------------------
C. Define the term Type I error and explain what a Type I error is in terms of this problem.
Type I error = alpha = the probability that you reject the company's claim
when in fact it is true.
-------------------------------
D. Define the term level of significance and identify the level of significance for this problem.
Comment: That must be a phrase used in your text; I'm not familiar with it.
-------------------

E. Calculate the test statistic as a z-score. Show all relevant work.
z(11.9) = (11.9-12)/0.4 = -0.25
=================================
F. Using a standard table, you determine that the critical value is –1.645. Determine if you are able to reject the null hypothesis and explain how you reached this conclusion. (Your conclusion should include a comment relating the results to the original problem.)
You fail to reject Ho as this test does not show significant statistical
evidence that the company's claim is wrong.
=========================
Cheers,
Stan H.