Perform the Required Chi-Square Hypothesis Test

question 26

Essay

Perform the required chi-square hypothesis test. Preliminary data analyses and other information indicate that it isreasonable to assume that the variable under consideration is normally distributed. Use the critical-value approach or theP-value approach as indicated.
-A manufacturer uses a new production method to produce steel rods. Under the old production method, the standard deviation of the lengths of the rods was 3.5 cm. The standard deviation of the lengths of a random sample of 17 steel rods produced under the new method was 2.4 cm. At the 0.10 significance level, test whether the standard deviation of the lengths of the new rods is different from 3.5 cm. Use the critical-value approach.

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Definitions:

MR = MC Rule

A principle in economics stating that profit maximization occurs when marginal revenue equals marginal cost.

Short Run

A period in economics where at least one input is fixed and cannot be changed.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full adjustment to changes.

Allocative Efficiency

A condition where resources are distributed according to consumer preferences, optimizing utility for both producers and consumers.