Discussion:
Q: 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 α = .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?