A manufacturer of potato chips would like to know whether its bag filling machine works correctly at the 444.0 gram setting. It is believed that the machine is underfilling the bags. A 40 bag sample had a mean of 443.0 grams. A level of significance of 0.02 will be used. Determine the decision rule. Assume the standard deviation is known to be 23.0.

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Answer:

We conclude that the  bag filling machine works correctly at the 444.0 gram setting.

Step-by-step explanation:

We are given the following in the question:

Population mean, μ = 444.0 gram

Sample mean, [tex]\bar{x}[/tex] = 443.0 grams

Sample size, n = 40

Alpha, α = 0.02

Population standard deviation, σ = 23.0 grams

First, we design the null and the alternate hypothesis

[tex]H_{0}: \mu = 444.0\text{ grams}\\H_A: \mu < 444.0\text{ grams}[/tex]

We use one-tailed(left) z test to perform this hypothesis.

Formula:

[tex]z_{stat} = \displaystyle\frac{\bar{x} - \mu}{\frac{\sigma}{\sqrt{n}} }[/tex]

Putting all the values, we have

[tex]z_{stat} = \displaystyle\frac{443 - 444}{\frac{23}{\sqrt{40}} } =-0.274[/tex]

Now, [tex]z_{critical} \text{ at 0.02 level of significance } = -2.054[/tex]

Since,  

[tex]z_{stat} < z_{critical}[/tex]

We fail to reject the null hypothesis and accept the null hypothesis. Thus, we conclude that the  bag filling machine works correctly at the 444.0 gram setting.