Use the Traditional Method to Test the Given Hypothesis

question 41

Essay

Use the traditional method to test the given hypothesis. Assume that the population is normally distributed and that the sample has been randomly selected. A manufacturer uses a new
production method to produce steel rods. A random sample of 17 steel rods resulted in lengths
with a standard deviation of 4.7 cm. At the 0.10 significance level, test the claim that the new
production method has lengths with a standard deviation different from 3.5 cm, which was the
standard deviation for the old method.

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Definitions:

Equity

The residual interest in the assets of a business after deducting its liabilities, representing the ownership interest of shareholders.

Assets

Resources owned by a business or individual that have economic value and can be used to meet debts or commitments.

Liabilities

Financial obligations or debts a company owes to external parties.

Certificate Of Deposit

A Certificate of Deposit is a savings certificate with a fixed maturity date and specified fixed interest rate that is issued by commercial banks.