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A Shipping Firm Suspects That the Variance for a Certain

question 98

Essay

A shipping firm suspects that the variance for a certain brand of tire used by its trucks is greater than 1,000,000.To check the claim, the firm puts 101 of these tires on its trucks and gets a standard deviation of 1200 miles. Atα = 0.05, test the shipping firmʹs claim.


Definitions:

Critical Value

The value resulting from application of a statistical test that is necessary for rejection (or nonacceptance) of the null hypothesis.

Significance Level

The risk set by the researcher for rejecting a null hypothesis when it is true.

Obtained Value

The value that results from the application of a statistical test.

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