SOLUTION: Hi, Can someone help me with these 2 questions, I'm a little confused as to what I am suppose to be doing. 1. You are the incoming inspector for potato chips – you are to ensure

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Question 133760: Hi, Can someone help me with these 2 questions, I'm a little confused as to what I am suppose to be doing.
1. You are the incoming inspector for potato chips – you are to ensure that each bag has 16 ounces or more in it. You want your testing to be at the level of significance of 0.05. You pull a sample of 49 bags of chips from a recent truckload. Your sample statistics are:
x-bar (the sample mean) = 15.9 ounces
s ( the sample standard deviation) = 0.35 ounces
(a) what is the null and alternative hypothesis
(b) one or two tailed test ??
(c) what is the critical z value for your test at the 0.05 level of significance??
(d) what is the calculated z value ??
(e) what is your decision about the load of potato chips ??
-- reject ?? -- not-reject ??
(a) Ho : μ <= 16 Vs H1 : μ < 16 (Left tailed test)
(b) One tailed test
(c) Critical z = 1.645
(d) Test Statistics:
z = follows N(0,1)
= -2
where
x bar=15.9 n=49 s=0.35 μ= 16
(e) Rejection Rule
Critical Value = -1.645
Thus we reject H0 if z < -1.645
As z = -2 < -1.645 we reject H0.
At the 5% level of significance, the data provides enough evidence to reject the null hypothesis. Thus we conclude that each bag has less than 16 ounces.

2. An owner of a fast food restaurant reported to corporate headquarters that the average bill paid by his customers in the last quarter was $6.20 and that the standard deviation was $1.90. Not knowing exactly what the effect would be, headquarters suddenly launched a nationwide promotional campaign featuring a large quantity discount for a multi-sandwich purchase. The stubs from the next 81 purchases at the owner’s franchise after the campaign was launched averaged $6.65.

Conduct the 5 step hypothesis test at a level of significance of 0.05 to determine if the promotion increased the average bill amount
Ans.
• To Test
Ho : μ= 6.20 Vs H1 : μ > 6.20 (Right tailed test)
• Level of significance = 0.05
• Test Statistics:
z = xbar-μ/SE follows N(0,1)
= 2.13
where
xbar =6.65 n=81 sd=1.9 μ= 6.2
• P-value = P(z > 2.13) = 0.0165
Since P-value of 0.0165 < 0.05 we reject H0.
It is statistically significant
• Rejection Rule
Critical Value = 1.645
Thus we reject H0 if z > 1.645
As z = 2.13 > 1.645 we reject H0.
• Conclusion
At the 5% level of significance, the data provides enough evidence to reject the null hypothesis. Thus we conclude that the promotion increased the average bill amount.

Answer by nanaktutors@yahoo.com(8) About Me  (Show Source):
You can put this solution on YOUR website!
1. You are the incoming inspector for potato chips – you are to ensure that each bag has 16 ounces or more in it. You want your testing to be at the level of significance of 0.05. You pull a sample of 49 bags of chips from a recent truckload. Your sample statistics are:
x-bar (the sample mean) = 15.9 ounces
s ( the sample standard deviation) = 0.35 ounces
(a) what is the null and alternative hypothesis
(b) one or two tailed test ??
(c) what is the critical z value for your test at the 0.05 level of significance??
(d) what is the calculated z value ??
(e) what is your decision about the load of potato chips ??
-- reject ?? -- not-reject ??
(a) Ho : μ <= 16 Vs H1 : μ < 16 (Left tailed test)
(b) One tailed test
(c) Critical z = 1.645
(d) Test Statistics:
z = follows N(0,1)
= -2
where
x bar=15.9 n=49 s=0.35 μ= 16
(e) Rejection Rule
Critical Value = -1.645
Thus we reject H0 if z < -1.645
As z = -2 < -1.645 we reject H0.
At the 5% level of significance, the data provides enough evidence to reject the null hypothesis. Thus we conclude that each bag has less than 16 ounces.

2. An owner of a fast food restaurant reported to corporate headquarters that the average bill paid by his customers in the last quarter was $6.20 and that the standard deviation was $1.90. Not knowing exactly what the effect would be, headquarters suddenly launched a nationwide promotional campaign featuring a large quantity discount for a multi-sandwich purchase. The stubs from the next 81 purchases at the owner’s franchise after the campaign was launched averaged $6.65.

Conduct the 5 step hypothesis test at a level of significance of 0.05 to determine if the promotion increased the average bill amount
Ans.
• To Test
Ho : μ= 6.20 Vs H1 : μ > 6.20 (Right tailed test)
• Level of significance = 0.05
• Test Statistics:
z = xbar-μ/SE follows N(0,1)
= 2.13
where
xbar =6.65 n=81 sd=1.9 μ= 6.2
• P-value = P(z > 2.13) = 0.0165
Since P-value of 0.0165 < 0.05 we reject H0.
It is statistically significant
• Rejection Rule
Critical Value = 1.645
Thus we reject H0 if z > 1.645
As z = 2.13 > 1.645 we reject H0.
• Conclusion
At the 5% level of significance, the data provides enough evidence to reject the null hypothesis. Thus we conclude that the promotion increased the average bill amount.