Question

A drug, which is used for treating cancer, has potentially dangerous side effects if it is taken in doses which are larger than 57.11⁢mg, the required dosage for the treatment. It is important that the variance of the amount of the active ingredient is 0.01. 25 tablets are randomly selected and the amount of the drug in each tablet is measured. It is determined that the variance of the amount of active ingredient is 0.0023⁢mg. Does the data suggests at α=0.01 that the variance of the drug in the tablets is less than the desired amount? Assume the population is normally distributed.

Step 1 of 5 :  State the null and alternative hypotheses. Round to four decimal places when necessary.

Population of standard deviation sign ^2 greater than or equal to 0.01

Population of standard deviation sign ^2 less than 0.01

Step. 2 Determine the critical values of the test statistic. Round to 3 decimals.

Step 3 Determine the value of the test statistic. Round to 3 decimals

Step 4 Reject Null Hypothesis? or Fail to Reject Null Hypothesis?

Step 5 There is sufficient evidence to show that the variance of the share price is different than claimed? or There is not sufficient evidence to show that the variance of the share price is different than claimed?

Answer 1