Answer:
A. 17.71; reject H0
Solution:
Here, we have to use Chi square test for the population variance or standard deviation.
The null and alternative hypotheses for this test are given as below:
H0: σ = 300 versus Ha: σ < 300
This is a lower tailed test.
The test statistic formula is given as below:
Chi-square = (n – 1)*S^2/ σ2
From given data, we have
n = 30
S = 225.5
σ = 300
Chi-square = (30 - 1)* 225.5^2 / 300^2
Chi-square = 16.39
We are given
Level of significance = α = 0.05
df = n – 1
df = 29
Lower Critical value = 17.71
(by using Chi square table or excel)
Test statistic = 16.39 < 17.71
So, we reject the null hypothesis
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