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Answer:
At the 0.05 level of significance, the claim made by Blue Diamond is true
Step-by-step explanation:
Given that the Blue Diamond Company advertises that their nut mix contains (by weight) 40% cashews, 15% Brazil nuts, 20% almonds and only 25% peanuts.
(Two tailed chi square test at 5% significance level)
Chi square is calculated as (Obs_exp)^2/Expected
Cashews Brazil nuts Almonds Peanuts Total
Observed 5 6 6 3 20
Expected 40% 15% 20% 25% 1
Expected 8 3 4 5 20
Chi square 1.125 3 1 0.8 5.925
df = 3
p value = 0.1153
Since p value >0.0 we accept null hypothesis.