Question:

Consider testing the hypothesis that the variance of a quality characteristic is 3.24. Specifically,

Ho : \({{\sigma }^{2}}\) = 3.24

H1 : \({{\sigma }^{2}}\) > 3.24

A sample of size 10 is found to yield the following measurements for the quality characteristic (although the sample size has been kept small to make your calculations easier, assume that the Central Limit Theorem is applicable).

22, 24, 24, 23, 20, 21, 21, 22, 23, 20

1. What statistic would you use to test the null hypothesis?
2. Calculate the value of your statistic for the above data.
3. Write the inequality that should be satisfied for you to reject the null hypothesis.

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