hypothesis testing

Finance Junkie
Posts: 205
Joined: Mon Feb 04, 2013 3:35 pm

hypothesis testing

Postby anbu.edu » Thu Mar 14, 2013 2:41 pm

A bottler of iced tea wishes to ensure that an average of 16 ounces of tea is in each bottle. In order to analyze the accuracy of the bottling process, a random sample of 150 bottles is taken. Using a t-distributed test statistic of -1.09 and a 5% level of significance, the bottler should:

The null hypothesis is what we want to reject right? . In this case the bottler wants to ensure that avg of 16 ounces of tea in a bottle which means we want U=16 therefore null hypothesis is U not equal to 16 right? .. but its the other way around can u please explain this concept

Finance Junkie
Posts: 356
Joined: Wed Apr 11, 2012 11:26 am

hypothesis testing

Postby content.pristine » Thu Mar 14, 2013 7:42 pm

Can you be a bit more specific of your doubt. Explaining concepts on the forum becomes difficult.
Just remember the null hypothesis is something that should be rejected in extreme cases.

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