The filling variance for boxes of cereal is designed to be .02 or less.

A sample of 30 boxes of cereal shows a sample standard deviation of .16 ounces. Use = .01 to determine whether the variance in the cereal box fillings is exceeding the design specification. a) In proper notation, state the hypotheses of this test. b) What is the rejection rule? c) Show your calculation of the test statistic. ______ = ______________

d) What is the conclusion about the issue in question ? Note: Your answer should take the form of a complete sentence. Solution: a) In proper notation, state the hypotheses of this test.

Null hypothesis: H 0 : 2 0.02 Alternate hypothesis: H 1 : 2 < 0.02 b) What is the rejection rule? If the critical value is greater than the test statistic value we accept the null hypothesis otherwise reject the null hypothesis Level of significance:

= 0.01
Critical value:

2 02.01,n 1 = 0 .01, 29 = 49.588

c) Show your calculation of the test statistic. Test statistics: Chi square test

=
2

( n 1) s 2
2

=
2

( 30 1) (0.16) 2
0.02 0.7424 0.02

2 =

2 = 6.0926

d) What is the conclusion about the issue in question ? Note: Your answer should take the form of a complete sentence. Conclusion: Since the calculated test statistic value is less than the critical value we may accept the
2 null hypothesis at 0.01 level of significance. Hence we conclude that H 0 : 0.02 that is the

variance in the cereal box fillings is exceeding the design specification.