A Bottling Company Produces Bottles That Hold 10 Ounces of Liquid

question 32

Multiple Choice

A bottling company produces bottles that hold 10 ounces of liquid. Periodically, the company gets complaints that their bottles are not holding enough liquid. To test this claim, the bottling company randomly samples 49 bottles and finds the average amount of liquid held by the bottles is 9.9155 ounces with a standard deviation of 0.35 ounce. Suppose the p-value of this test is 0.0455. State the proper conclusion.

• A) At α = 0.05, reject the null hypothesis.
• B) At α = 0.035, accept the null hypothesis.
• C) At α = 0.085, fail to reject the null hypothesis.
• D) At α = 0.025, reject the null hypothesis.

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Definitions:

Target Balance

A predetermined amount of money that a company or individual aims to have in an account at any given time.

Minimum Balance

The least amount of money that a bank requires a customer to have in an account to qualify for specific services or to avoid certain fees.

BAT Model

BAT Model stands for the Behavioral Analysis and Therapy Model, which is typically related to psychology and behavioral sciences, not a common term in finance and hence might be mistaken or the context misidentified.

Cash Outflows

Money that exits a company, typically as a result of operational expenses, investment activities, and financing.