Albert Miller, VP of Production of a Company That Produces $\alpha$

question 20

Multiple Choice

Albert Miller, VP of Production of a company that produces components for auto braking systems is examining the diameter of a specialized electrical wire produced with newly acquired machines in a new production line.For safety reasons, it is important that the variance in the diameter doesn't exceed 0.15 inches.Albert knows that the variance of the other production lines is 0.15 and he wants to make sure the new machine also delivers products whose variance doesn't exceed the safety limit.His staff randomly selects a sample of 25 wires and find out that the standard deviation of the sample is 0.42 inches.Assume that wire diameters are normally distributed.Using $\alpha$ = 0.10, the appropriate decision is ________.

• A)increase the sample size
• B)reduce the sample size
• C)fail to reject the null hypothesis
• D)maintain status quo
• E)reject the null hypothesis

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