Question

A firm operates a manufacturing plant, producing packets of nuts. An industry inspector visits the plant...

A firm operates a manufacturing plant, producing packets of nuts. An industry inspector visits the plant and wants to test the hypothesis that the population mean weight of a packet is 50 grams. The distribution is unknown. He He randomly selects a sample of 100 packets of nuts and calculates the sample mean as 51.0 grams.                                                                                                                

  1. State the Central limit theorem and explain its relevance in the context of this question.
  1. Assume the inspector knows the population standard deviation to be 10 grams. Write down the null hypothesis relating to the population mean as well as the alternative assuming a two-tailed test. Carry out the test using an appropriate two-tailed 5 percent significance test. Carefully explain and interpret the test result. Use a diagram to aid your interpretation, clearly mark relevant points on the distribution and clearly state any assumptions you are making.

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