3 Test to see if 2 is 33 Use 01 n28 s2 36SolutionHere the
3. Test to see if 2 is 33. Use = .01. n=28, s2 = 36
Solution
Here the test of hypothesis is,
H0 : 2 = 33 Vs H1 : 2 33
This is two tailed test.
alpha () = level of significance = 0.01
2 = 33 (population variance)
n = 28
s2 = 36 (sample variance)
The test statistic for testing variance is,
2 = [ (n-1) * s2 ] / 2
= [ ( 28 - 1) * 36 ] / 33
= 972 / 33
2 = 29.45
We can find critical value by using EXCEL.
syntax,
=CHIINV(probability,d.f.)
where probability = alpha
d.f. = n - 1 = 28 - 1 = 27
critical value = 46.9629
2 < critical value
We do not reject H0 at 1% level of significance.
That is the population variance is 33.
