Question

A consumer believes that a certain potato chip maker is putting fewer chips in their regular bags of chips than the advertised amount of 12 ounces. In order to test the null hypothesis that the average chip weight is 12 ounces per bag vs. the alternative hypothesis that the average chip weight is less than 12 ounces per bag, a random sample of 39 bags were selected. The resulting data produced a p - value of 0.063.

(a) At a 5% level of significance, should the null hypothesis be rejected? (Type: Yes or No):
(b) At a 10% level of significance, should the null hypothesis be rejected? (Type: Yes or No):

Answer 1

Answer:

a) No

b) Yes

Step-by-step explanation:

Null Hypothesis: u = 12

Alternate Hypothesis: u < 12

p value = 0.063

The rule to reject or not reject the null hypothesis is:

• If p value is equal to or less than significance level, the null hypothesis is rejected
• if p value is greater than significance level, the null hypothesis is not rejected

Part a)

Significance Level = 5% = 0.05

Since the p value 0.063 is greater than the significance level 0.05, we fail to reject the Null Hypothesis.

Part b)

Significance Level = 10% = 0.10

Since the p value 0.063 is lesser than the significance level 0.10, we reject the Null Hypothesis.