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A night time cold medicine bears a label indicating the presence of 600 mg of acetaminophen in each fluid ounce of the drug. From previous studies the population standard deviation is known to be 21 mg. Suppose that Health Canada randomly selected 153 one-ounce samples and found that the mean acetaminophen content was 589 mg. Using , test the claim of the pharmaceutical company that the population mean is different from 600 mg.
Would you buy this cold medicine? Give your reasons.
1.
State
2. State the level of significance
3. State the Decision Rule
4. Compute the Test Statistic
5. State your conclusion
Step 1: Hypothesis statements
Steps 2 and 3: Level of Significance and the Decision Rule
Bell curve figure and table
Using values you have obtained from Tables A.1 or A.2, enter the critical value z or t into the red boxes and the significant level into the yellow boxes.
For one tail questions leave the appropriate boxes empty.
Click on boxes to enter value.
0.01
0.01
-2.326
2.326
Step 4. Test statistic (formula).
Step 5:Conclusion.
Question 6: (5 marks)
The expense of moving the storage yard for the Consolidated Package Delivery Service (CPDS) is justified only if it can be shown that the daily mean travel distance will be significantly reduced from 342 km. In trial runs of 12 delivery trucks, the mean and standard deviation are found to be 318 km and 67 km, respectively. At the 0.01 level of significance, test the claim that the mean is less than 342 km. Do you think the storage yard be moved? Give your reasons.
1.
State
2. State the level of significance
3. State the Decision Rule
4. Compute the Test Statistic
5. State your conclusion
Step 1: Hypothesis statements
Steps 2 and 3: Level of Significance and the Decision Rule
Bell curve figure and table
Using values you have obtained from Tables A.1 or A.2, enter the critical value z or t into the red boxes and the significant level into the yellow boxes.
For one tail questions leave the appropriate boxes empty.
Click on boxes to enter value.
0.01
-2.718
Step 4. Test statistic (formula).
Step 5:Conclusion.