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Hypothesis Testing of Standard Deviation

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A manufacturer uses a new production method to produce steel rods. A random sample of 17 steel rods resulted in lengths with a standard deviation of 21.1cm. At the 0.10 significance level, test the claim that the new production method has lengths with a SD different form 3.5cm which was the SD for the old method. Identify the null hypothesis, alternative hypotheses, test statistic or P-value and the final conclusion that addresses the original claim.

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Solution Summary

The solution provides step by step method for the calculation of testing of hypothesis. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.

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