THE Next Questions Are Based on the Following Information

question 25

Multiple Choice

THE Next Questions Are Based On The Following Information:
A large milling machine produces steel rods to certain specifications.The machine is considered to be running normally if the standard deviation of the diameter of the rods is at most 0.15 millimeters.The line supervisor needs to test the machine is for normal functionality.The quality inspector takes a sample of 25 rods and finds that the sample standard deviation is 0.19.
-What are the null and alternative hypotheses for the test?

• A)H₀ : σ² > 0.15 and H₁ : σ² ≤ 0.15
• B)H₀ : σ ≥ 0.15 and H₁ : σ < 0.15
• C)H₀ : σ = 0.0225 and H₁ : σ ≠ 0.0225
• D)H₀ : σ² ≤ 0.0225 and H₁ : σ² > 0.0225

---

Definitions:

Home Loans

Loans offered by financial institutions to individuals for the purchase of homes, typically secured by the property itself.

Economic Model

A simplified representation of economic processes, used to analyze and predict economic behaviors.

Financial Crisis

A broad term for a variety of situations in which some financial assets suddenly lose a large part of their nominal value, often leading to a collapse of markets and economies.

Economic Model

A simplified representation of reality used to analyze and predict economic behaviors and outcomes.