It is known that the mean diameter of rivets produced by two firms, A and B are practically the same but the standard deviation may differ. For 22 rivets produced by firm A, the variance is 1.9mm; and for 16 rivets manufactured by firm B, the variance is 3.8 mm. Answer the next three questions.
1. Compute the value of test statistic that one can use to test whether the products of firm A have the same variability as those of firm B.
2. What is the critical value of test statistic that you will compare your calculated test statistic with? Assume 5% significance level.
3. True or False. The variability of produce of firms A and B is the same.
Hypothesis : Vs
1 ) The test statistic under Ho is ,
Since ,
2 ) Critical value :
DEcision Rule : Here ,
Therefore , fail to reject Ho at 5% level of significance
3 ) Conclusion : Hence , The variablity of produce of firms A and B is the same .
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