Step 1 :Identify the null and alternative hypotheses. The null hypothesis, $H_0$, is that $\mu = 50$. The alternative hypothesis, $H_a$, is that $\mu \neq 50$.
Step 2 :Calculate the standardized test statistic using the formula: $Z = \frac{\bar{x} - \mu}{\sigma / \sqrt{n}}$. Substituting the given values, we get: $Z = \frac{48.9 - 50}{3.26 / \sqrt{55}}$. This gives us $Z = -2.06$.
Step 3 :Determine the critical value(s). Since we are conducting a two-tailed test, we need to find the critical values that correspond to the upper and lower 1% of the standard normal distribution. The critical values are approximately $\pm 2.33$.
Step 4 :Determine the outcome and conclusion of the test. Since the standardized test statistic, $-2.06$, is not less than the lower critical value, $-2.33$, and not greater than the upper critical value, $2.33$, we fail to reject the null hypothesis. This means that at the 2% significance level, there is not enough evidence to support the claim that the population mean is not 50.