It is crucial that the variance of a production process be less than or equal to 25 . A sample of 22 is taken. The sample variance equaled 26.
a. Construct a 90% confidence interval for the population variance.
b. Construct a 90% confidence interval for the population standard deviation.
c. State the null and alternative hypotheses to be tested.
d. Compute the test statistic.
e. The null

hypothesis is to be tested at the 10% level of significance. State the decision rule for the test.
f. What do you conclude about the population variance?


a. 16.7123 to 47.1043
b. 4.0881 to 6.8633
c. H0: ?2 ? 25
Ha: ?2 > 25
d. 21.84
e. Reject H0 if ?2 > 29.6151.
f. Do not reject H0, there is not sufficient evidence to conclude that the variance exceeds 25.

Business

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