Samples of a car companys output is taken and 490 cars are m

Samples of a car company\'s output is taken and 490 cars are made in a day with a known standard deviation of 16 cars. Spell out the null and alternate hypotheses that the average production of the car company is less than 475 cars. Evaluate the hypothesis (Accept or Reject) at the following significance levels:

a. 0.001

b. 0.1

Solution

Hypotheses are:


Null Hypothesis:
Ho: The average production of the car company is greater than or equal to 475 cars
=>Ho: ? ? 475

Alternative Hypothesis:
Ha: The average production of the car company is less than 475 cars(claim)
=> Ha: ? < 475