A consumer protection group randomly checks the volume of different beverages to ensure that companies are packaging the stated amount. Each individual volume is not exact, but a volume of iced tea beverages is supposed to average 300 mL with a standard deviation of 3 mL. The consumer protection group sampled 20 beverages and found the average to be 298.4 mL. Using the given table, which of the following is the most restrictive level of significance on a hypothesis test that would indicate the company is packaging less than the required average of 300 mL?

\begin{tabular}{|c|c|c|c|}
\hline \multicolumn{4}{|c|}{Upper-Tail Values} \\
\hline Critical & [tex]$5\%$[/tex] & [tex]$2.5\%$[/tex] & [tex]$1\%$[/tex] \\
\hline \begin{tabular}{c}-values\end{tabular} & 1.65 & 1.96 & 2.58 \\
\hline \hline
\end{tabular}

A. [tex]$1\%$[/tex]
B. [tex]$2.5\%$[/tex]
C. [tex]$5\%$[/tex]
D. [tex]$10\%$[/tex]



Answer :

To determine the most restrictive level of significance on a hypothesis test that would indicate the company is packaging less than the required average of 300 mL, we need to follow these steps:

1. State the Hypotheses:
- Null Hypothesis ([tex]\(H_0\)[/tex]): The population mean volume ([tex]\(\mu\)[/tex]) is 300 mL.
- Alternative Hypothesis ([tex]\(H_a\)[/tex]): The population mean volume ([tex]\(\mu\)[/tex]) is less than 300 mL.

2. Collect the Known Values:
- Population mean ([tex]\(\mu\)[/tex]): 300 mL
- Sample mean ([tex]\(\bar{x}\)[/tex]): 298.4 mL
- Population standard deviation ([tex]\(\sigma\)[/tex]): 3 mL
- Sample size ([tex]\(n\)[/tex]): 20

3. Calculate the Z-score:
The Z-score formula for a sample mean is given by:
[tex]\[ Z = \frac{\bar{x} - \mu}{\frac{\sigma}{\sqrt{n}}} \][/tex]

Plugging in the values:
[tex]\[ Z = \frac{298.4 - 300}{\frac{3}{\sqrt{20}}} \][/tex]
[tex]\[ Z \approx -2.39 \][/tex]

4. Compare the Z-score with Critical Values:
The given critical values from the table are:
- For 5% significance level: 1.65
- For 2.5% significance level: 1.96
- For 1% significance level: 2.58

Since this is a lower-tailed test (testing if the mean is less than 300 mL), we take the negative of these critical values:
- For 5% significance level: -1.65
- For 2.5% significance level: -1.96
- For 1% significance level: -2.58

5. Determine the Most Restrictive Level of Significance:
We compare our Z-score (approximately -2.39) to these critical values:
- [tex]\( -2.39 \)[/tex] is less than [tex]\( -1.96 \)[/tex] (critical value for 2.5% significance level).
- [tex]\( -2.39 \)[/tex] is greater than [tex]\( -2.58 \)[/tex] (critical value for 1% significance level).

Therefore, the most restrictive level of significance that still rejects the null hypothesis is 2.5%.

So, the most restrictive level of significance indicating the company is packaging less than the required average 300 mL is 2.5%.