Final answer:
To test the hypothesis, a t-test will be conducted using the sample mean and standard deviation of the jars' contents. The critical value or p-value will be used to determine if the null hypothesis can be rejected or not.
Step-by-step explanation:
The hypothesis being tested is whether the machine is working properly in maintaining an average weight of 8 oz per jar. The null hypothesis (H0) is that the machine is working properly, while the alternate hypothesis (H1) is that the machine is not working properly.
To test this hypothesis, a t-test will be conducted using the sample mean weight of 7.89 oz, the standard deviation of 0.2 oz, the sample size of 16 jars, and a significance level of 5%. The critical value for this test can be found using the t-distribution table or calculator.
The test statistic can be calculated using the formula: t = (sample mean - population mean) / (sample standard deviation / sqrt(sample size)). If the absolute value of the test statistic is greater than the critical value, the null hypothesis is rejected. Alternatively, the p-value can be calculated using the t-distribution and compared to the significance level to make a decision.
Based on the calculated test statistic or p-value, a conclusion can be drawn about whether the machine requires a costly adjustment or not.