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Suppose a wholesaler of paints wants to estimate the actual amount of paint contained in 10 kg cans purchased from a paint manufacturing company. It is known from the manufacturer’s specifications that the standard deviation of the amount of paint is equal to 0.02 kg. A random sample of 50 cans is selected, and the average amount of paint per 10 kg can is 0.995 kg.
i. Setup a 99 per cent confidence interval estimate of the true population average amount of paint included in a 10 kg can.
ii. Based on your results, do you think that the wholesaler has a right to complain to the manufacturer? Why?