Given: n= 10, x̄ =0.53,
μ = 0.50, S = 0.03, α = 0.01 = 1%
H0: The machine is in proper working order,
i.e., H0: µ = 0.50
H1 : The machine is not in proper working order.
i.e., H1 : µ ≠ 0.50 {two tailed test}

The test statistic is –


For (n-1) = (10 -1) = 9 d.f at 1% level of significance the two tail critical values are
k1 =-3.25 and k2 = 3.25
Here tcal = 3 is in acceptance region.
∴ H0 is accepted.
Conclusion : The machine is in proper working order.