QuestionRespond to each of the following questions in a minimum of 175 words.Hypothesis testing is used in business to test assumptions and theories. These assumptions test against the evidence provided by actual, observed data. A statistical hypothesis is a statement about the value of a population parameter. Hypothesis testing is a process to decide between two (2) competing, mutually exclusive, collectively exhaustive declarations about the parameter’s value. (Refer to LO 9-1).Aparametercan be the population mean, population proportion, population standard deviation, population variance. We will work primarily with the mean.Weight, (lbs.)51.94 52.54 49.78 49.94 48.61 46.74 49.35 50.10 51.13 46.71 51.45 47.77 48.51 48.71 49.67 48.43 50.62 45.65 51.44 50.37 47.63 51.73 51.95 48.48 49.31 48.27 52.31 49.7 47.51 44.98Scenario. An industrial seller of grass seeds packs product in 50-pound bags. A customer has recently filed a complaint alleging underweight bags. A production manager randomly sampled a batch and measures the following weights (use Week 4 Discussion Data in Resources below).To determine whether the machinery is indeed underfilling the bags, the manager will conduct aone-sample t-test of meanswith a significance levela = 0.05. The population standard deviation (s) is unknown. Use a one-tail test to show if the bags are underweight. (Refer to LO 9-7). Use the hypothesis testing steps in Example One-Sample t-Test of Means.Save time: (a) Reuse and modify Example 1 One-Sample t-Test of Means; (b) Answer the questions in the Excel document.A. Use a one-tail t-test meansStep 1: State the Hypotheses (Ho, H1)Step 2: Specify the Decision RuleInclude, the significant level (alpha), with a 95% confidence levelStep 3: Calculate the Test Statistic and p-valueStep 4: Make the DecisionStep 5: Take ActionAre the bags underweight? Should they recalibrate the machinery?B. The next two questions illustrate a different outcome when using a two-tail test.B1. Calculate the two-tail t-test statistic and p-value.B2. Compare the one-tail test p-value to a two-tail test p-value. Which test is most favorable to the production manager (less likely to prove underfilled bags)? Why?MathStatistics and Probability DAT 565
