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A manufacturing company of tires claims the standard deviation of tire life is 4

ID: 3067120 • Letter: A

Question

A manufacturing company of tires claims the standard deviation of tire life is 4000 kilometers. As tested, the sample standard deviation of tire life is 3645.94 kilometers and n = 16.
a. Can you conclude, using , that the standard deviation of tire life is less than 4000 kilometers?
b. Explain how you could answer the question in part (a) by constructing a 95% one-sided confidence interval for the standard deviation. A manufacturing company of tires claims the standard deviation of tire life is 4000 kilometers. As tested, the sample standard deviation of tire life is 3645.94 kilometers and n = 16.
a. Can you conclude, using , that the standard deviation of tire life is less than 4000 kilometers?
b. Explain how you could answer the question in part (a) by constructing a 95% one-sided confidence interval for the standard deviation. A manufacturing company of tires claims the standard deviation of tire life is 4000 kilometers. As tested, the sample standard deviation of tire life is 3645.94 kilometers and n = 16.
a. Can you conclude, using , that the standard deviation of tire life is less than 4000 kilometers?
b. Explain how you could answer the question in part (a) by constructing a 95% one-sided confidence interval for the standard deviation.

Explanation / Answer

a)
H0: sigma = 4000
H1: sigma < 4000

s = 3645.94
n = 16

Test statistics,
chi-square = (16-1)*(3645.94/4000)^2 = 12.4620

critical value of chi-square = 7.2609

As test statistics is greater than critical value, we fail to reject null hypothesis.

There are not significant evidence to conclude that std. dev. is less than 4000

b)
chi square value for upper bound = 7.2609

upper limit of CI = sqrt((16-1)*3645.94^2/7.2609) = 5240.3296

Hence the CI = (0, 5240.3296)

As 4000 is included in this CI, we fail to reject the null hypothesis.

There are not significant evidence to conclude that std. dev. is less than 4000

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