Answer:
The business should reject the supplier's claim as mean length is not equal to claimed value of 26.70 inches.
Step-by-step explanation:
We are given the following in the question:
Population mean, μ = 26.70 inches
Sample mean, [tex]\bar{x}[/tex] = 26.77 inches
Sample size, n = 48
Alpha, α = 0.05
Population standard deviation, σ = 0.20 inches
First, we design the null and the alternate hypothesis
[tex]H_{0}: \mu = 26.70\text{ inches}\\H_A: \mu \neq 26.70\text{ inches}[/tex]
We use Two-tailed 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{26.77 - 26.70}{\frac{0.20}{\sqrt{48}} } = 2.425[/tex]
Now, [tex]z_{critical} \text{ at 0.05 level of significance } = 1.96[/tex]
Since,
[tex]z_{stat} > z_{critical}[/tex]
We reject the null hypothesis and accept the alternate hypothesis. Thus, the business should reject the supplier's claim as mean length is not equal to claimed value of 26.70 inches.