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Hypothesis Testing of Varaiance: Cereal box filling weight

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The filling weight for boxes of cereal is designed to have a variance .02 ounces or less. A sample of 41 boxes of cereal shows a sample standard deviation of .16 ounces. Use alpha = .05 to determine whether the variance in the cereal box filling weight is exceeding the design specification.

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Solution Summary

The solution provides step by step method for the calculation of testing of hypothesis of variance. 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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Answer
The null hypothesis under consideration is
H0: Variance in the cereal box filling weight ≤ 0.02 ( ≤ 0.02)
The alternative hypothesis is
H1: Variance in the cereal box filling weight > 0.02 ( > 0.02)
The test statistic used is
That is, = ...

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