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Hypothesis Testing of Mean: Crown Classic Cola

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I'm having a hard time understanding hypothesis testing and I would like to know how to set this problem up correctly and solve it so I know how to do this on an exam:

The Crown Bottling Company has just installed a new bottling process that will fill 16-ounce bottles of the popular Crown Classic Cola soft drink. Both overfilling and underfilling bottles are undesirable. The company would like to know if the average fill volume is different than 16 ounces. They take a sample of 15 bottles, measure the contents, and calculate a sample average of 16.02 and a sample standard deviation of 0.10.

a) What is the appropriate null and alternate hypothesis to determine if the fill process requires adjustment?

b) Test the hypothesis using ? = 0.03. Show explicitly the critical value, rejection region, and how you calculated the test statistic. Explicitly state whether or not you reject the null hypothesis and why.

c) Repeat the hypothesis test using the Z distribution instead of the t distribution to find the critical value. Does your conclusion change?

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Solution Summary

The solution provides step by step method for the calculation of testing of hypothesis. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.