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We want to compare the variation in diameters of an engine part produced by Manufacturer Alpha against those produced by Manufacturer Beta. Sample variance for Manufacturer Alpha, based on n=10 samples, is s12= 0.0003. In contrast, the variance of the diameter measurements for a sample of 20 from Manufacturer Beta is s22 = 0.0001. Do the data provide sufficient information to indicate a smaller variation in diameters for Manufacturer B? Test using α = 0.05 level of significance. State clearly the null hypothesis you are testing.
Solution: Here the given information are
For Alpha
n1=10, =0.0003
For Beta
n2=20, = 0.0001
Here we want to test the variance between two manufactures.
=variance in the diameters of the Manufacturer Alpha
=variance in the diameters of the Manufacturer Beta
We want to test
vs
Here, >, we take test statistic as
Under ,
=
=
=3 ( calculated value )
= 2.423 ( table value )
Here Calculated value > Table value.
We reject at 5% level of significance.
Conclusion: The variances in the diameters of engine part produced by Manufacturer Alpha and
Manufacturer Beta.
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