A brewery has develop a new India Pale Ale IPA that they are

A brewery has develop a new India Pale Ale (IPA) that they are considering bringing to market. As part of the decision process the brewery conducts a market research study on the IPA. For the study, 100 people taste the IPA and rate the beer on a taste scale of 0 to 100. The brewery will market the IPA if the average rating exceeds 75.

a) What is the appropriate null and alternate hypothesis to conclude the brewery should market the IPA?

b) Using a = 0.05, draw a conclusion for the hypothesis test. Make sure you state your conclusion in the context of the problem.

A brewery has develop a new India Pale Ale (IPA) that they are considering bringing to market. As part of the decision process the brewery conducts a market research study on the IPA. For the study, 100 people taste the IPA and rate the beer on a taste scale of 0 to 100. The brewery will market the IPA if the average rating exceeds 75. a) What is the appropriate null and alternate hypothesis to conclude the brewery should market the IPA? b) Using a = 0.05, draw a conclusion for the hypothesis test. Make sure you state your conclusion in the context of the problem.

Solution

a) What is the appropriate null and alternate hypothesis to conclude the brewery should market the IPA?

Let mu be the population mean

Null hypothesis: mu=75

Alternative hypothesis: mu>75

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b) Using a = 0.05, draw a conclusion for the hypothesis test. Make sure you state your conclusion in the context of the problem.

It is a right-tailed test.

Since the p-value of t test is 0.0069 which is less than 0.05, we reject the null hypothesis.

So we can conclude that the brewery will market the IPA