Question: A tire company has entered into a contract to supply tires for a leading Japanese automobile manufacturer. Executives were originally planning to make all the tires at their Ohio plant, but they also have an option to build some tires at their Michigan plant. A critical quality characteristic for the tires of tread thickness, and the automaker wants to know if the standard deviation in tread thickness of tires produced at the Ohio plant (population #1) exceeds the standard deviation for tires produced at the Michigan plant (population #2). If so, the automaker will specify that the tire company use the Michigan plant for all the tires because a high standard deviation is not desirable. A sample of 11 tires was selected for each plant, with sample variances of

You can use a significance level of 0.05.

a. What is the population parameter of interest?
b. Formulate the appropriate null and alternative hypotheses.
c. What is the test statistic to be used? What assumptions do you need to make to use this test statistic?
d. Compute the test statistic
e. Construct the rejection region, and reach a decision.

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