Test the hypothesis that the variance of the population of, Microeconomics

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Test the hypothesis that the variance of the population of

The manufacturer of a machine to package soap powder claimed that her machine could load cartons at a given weight with a range of no more than .4 ounce. The mean and variance of a sample of eight 3-pound boxes were found to equal 3.1 and .018, respectively. Test the hypothesis that the variance of the population of weight measurements is σ2 = .01 against the alternative that σ2 > .01.

a. Use an α = .05 level of significance. What assumptions are required for this test?

b. What can be said about the attained significance level using a table in the appendix?

c. Applet Exercise What can be said about the attained significance level using the appropriate applet?

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Microeconomics: Test the hypothesis that the variance of the population of

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