Answer:
The business should reject the supplier's claim as mean length is not equal to claimed value of 26.70 inches.
Explanation:
We are given the following in the question:
Population mean, μ = 26.70 inches
Sample mean,
= 26.77 inches
Sample size, n = 48
Alpha, α = 0.05
Population standard deviation, σ = 0.20 inches
First, we design the null and the alternate hypothesis

We use Two-tailed z test to perform this hypothesis.
Formula:

Putting all the values, we have

Now,

Since,

We reject the null hypothesis and accept the alternate hypothesis. Thus, the business should reject the supplier's claim as mean length is not equal to claimed value of 26.70 inches.