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Filaments made at Gloglobe factory are supposed to contain 2.75 mg of chromelite. Because of randomness...

Filaments made at Gloglobe factory are supposed to contain 2.75 mg of chromelite. Because of randomness in the manufacturing process, the amount of chromelite in the filament is actually a random variable. If a filament has more than 2.77 mg or less than 2.73 mg of chromelite, it must be thrown out. Suppose the machines at the factory make filaments with a chromelite distribution which is normally distributed with mean µ = 2.75 mg and standard deviation σ = 0.02 mg of chromelite. Then about 32% of the filaments must be discarded. The factory boss is considering buying a new machine that is known to make filaments of the same mean µ = 2.75 mg, but might have a smaller variance. The boss is interested in testing H0 : σ = 0.02 versus Ha : σ < 0.02. The machines are expensive, so he doesn’t want to make a Type I Error; he sets α = 0.01.

(a) Suppose he gets a random sample of size n = 20 filaments from the new machine. Construct a test statistic and a decision rule.

(b) Suppose the new machine makes filaments with a standard deviation of 0.01 mg of chromelite. What is the power for the test?

(c) Repeat (a) and (b) for a sample size of n = 50.

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