Question: The Baltimore Steel and Pipe Company recently developed a new pipe product for a customer. According to specifications, the pipe is supposed to have an average outside diameter of 2.00 inches with a standard deviation equal to 0.10 inch, and the distribution of outside diameters is to be normally distributed. Before going into full-scale production, the company selected a random sample of 30 sections of pipe from the initial test run. The following data were recorded:
a. Using a significance level of 0.01, perform the appropriate test.
b. Based on these data, should the company conclude that it is meeting the product specifications? Explain your reasoning.