Before agreeing to purchase a large order of polyethylene sheaths for a particular type of high-pressure, oil-filled submarine p
ower cable, a company wants to see conclusive evidence that the population standard deviation of sheath thickness is less than .05 mm. What hypotheses should be tested, and why
From the scenario described above, the company wants to see conclusive evidence that the population standard deviation of sheath thickness is less than .05 mm ; THIS SIMPLY means ; REJECTION OF the NULL HYPOTHESIS. This is because once there is a significant or conclusive evidence in hypothesis testing, then we reject the null and support the claim of the alternative hypothesis.
Hence, the alternative hypothesis is ; population standard deviation of sheath Thickness is less than 0.5.