The management of a soft drink company is interested in determining whether the proper amount of soft drink has been placed in 1-liter bottles at the local bottling plant. The bottling plant has informed the management that the population standard deviation for 1-liter bottles is 0.025 liter. A random sample of 100 1-liter bottles selected from this bottling plant indicates a sample mean of 0.995 liters. Use a one-sample hypothesis test to decide whether the mean amount in the bottles is different from 1.0 liters. Use a 0.05 level of significance.   State the null and alternative hypothesis for this problem. Determine the sample test statistic value for this problem. Determine the critical test statistic value for this problem. What is your statistical decision for this problem?

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Hypothesis Testing

In statistics, there are two ways to calculate the sample data. One is descriptive statistics and the other is inferential statistics.  In descriptive statistics, all of the information is defined through graphs and charts. In inferential statistics, it allows one to test the hypothesis and it is always used to predict the data. Inferential statistics has two main areas: estimating parameters and hypothesis testing. A hypothesis is a statement about the unknown parameter of the population which we want to verify from the information available from the sample. The premise may or may not be true. The estimation of the whole population would be a reasonable way of deciding if the statistical hypothesis is valid. There are two types of hypotheses. They are null hypothesis and alternative hypothesis.