Grandstand Sports has received a shipment of baseballs that must conform to an average diameter specification of 2.9 inches. Variation to either side of that average is cause for concern. You plan to measure a sample of 50 baseballs to evaluate the recent shipment.

The sample mean diameter is 2.96 inches. What should the company conclude about the shipment as a whole? Set up a hypothesis test using a significance level of 1%. Assume that the population standard deviation is .2 inches.