Solution:
Given:
Sample size = n = 10
Sample standard deviation = s = 0.39
Population standard deviation =
Claim: The standard deviation of the total March precipitation in recent years is less than 0.69.
Level of significance = 0.1
Part i) Null hypothesis:
Part ii) Alternative hypothesis:
Part iii) Type of test statistic:
We use Chi-square test of variance ( standard deviation)
Part iv) Test statistic value:
Part v) P-value:
Use following Excel command:
=CHISQ.DIST(X2 , df,cumulative)
where
df = n - 1 = 10 - 1 = 9
thus
=CHISQ.DIST(2.875,9,TRUE)
=0.031
Thus P-value = 0.031
Part vi) Conclusion:
Decision Rule:
Reject null hypothesis H0, if P-value < 0.10 level of
significance, otherwise we fail to reject H0
Since P-value = 0.031 < 0.10 level of significance, we reject null hypothesis H0.
Thus at 0.10 level of significance, we have sufficient evidence to support the claim that the standard deviation of the total March precipitation in recent years is less than 0.69.
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