A machine fills ketchup bottles. One of the requirements is that the mean content of the bottles should be 10 ounces. Management wishes to set up a decision rule to decide whether or not this is true based on a random sample of bottles. The risk of type I error is specified at .05. A sample of 100 bottles will be taken; it is believed that the standard deviation of fills is .3 ounces. If it is decided that Z = 2, the decision rule boundary values are:
a) 9.60 and 10.40
b) 9.10 and 9.90
c) 9.94 and 10.06
d) 9.40 and 10.60
Note: Forecasting Class
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