Perform the Required Hypothesis Test for Two Population Standard Deviations $\quad 8.0,8.1,8.0,8.1,7.9,8.0,7.9,8.0,8.1$

question 28

Essay

Perform the required hypothesis test for two population standard deviations. Assume that independent samples havebeen randomly selected from the two populations and that the variable under consideration is normally distributed onboth populations. Use the critical-value approach.
-The manager of a juice bottling factory is considering installing a new juice bottling machine which she hopes will reduce the amount of variation in the volumes of juice dispensed into 8-fluid-ounce bottles. Random samples of 9 bottles filled by the new machine and 10 bottles filled by the old machine yielded the following volumes of juice (in fluid ounces). New machine: $\quad 8.0,8.1,8.0,8.1,7.9,8.0,7.9,8.0,8.1$ Old machine: $\quad 8.2,8.0,7.9,7.8,8.5,8.1,8.1,8.2,7.9,7.9$ Do the data provide sufficient evidence to conclude that there is less variation in the volumes of juice filled by the new machine than in the volumes of juice filled by the old machine? Perform an F-test at the $10 \%$ significance level. (Note: $\mathrm { s } _ { 1 } = 0.0782 , \mathrm {~s} _ { 2 } = 0.2066$ )

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Definitions:

Salvage Value

The estimated concluding value of an asset at the expiration of its functional life.

Simple Rate Of Return

A calculation that measures the profitability of an investment as the annual incremental net operating income divided by the initial investment cost.

Sales Revenues

The total amount of money generated from the sale of goods or services by a company before any costs or expenses are subtracted.

Cash Operating Expenses

Expenses that a company pays in cash during an accounting period, excluding non-cash expenses such as depreciation.