question archive An automotive part must be machined to close tolerances to be acceptable to customers

An automotive part must be machined to close tolerances to be acceptable to customers

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An automotive part must be machined to close tolerances to be acceptable

to customers.  Production specifications call for a maximum variance in the lengths of the parts of 0.0004.  Suppose a random sample of 30 parts gives a variance of s2 = 0.00024.  You wish to test H0:  σ 2 ≥ 0.0004 vs Ha:  σ 2 < 0.0004 at the 5% level of significance.  Which of the following is the correct decision and conclusion? (You can assume that part lengths follow a normal distribution)



A)Do not reject H0; The parts are not meeting the company standard
B)  Do not reject H0; The parts are meeting the company standard
C)  Reject H0; The parts are meeting the company standard
D)   Reject H0; The parts are not meeting the company standard

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