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Use the data to calculate the sample variance, s. (Round your answer to five decimal places.) n = 7: 1.2, 3.4, 1.5, 2.1, 3.4,

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We are given the data to calculate the sample variance, s2.

n = 7: 1.2, 3.4, 1.5, 2.1, 3.4, 2.7, 2.7

The sample variance is given by,

s^2=\frac{1}{n}\sum x_i^2-(\frac{1}{n}\sum x_i)^2

= 4.11429 (rounded to 5 decimal places)

Next, we have to construct a 95% confidence interval for the population variance \sigma^2 .

The (1 - \alpha )% confidence interval for the population variance \sigma^2 (when \mu is unknown) is given by,

(\frac{\sum(x_i-\overline{x})^2}{\chi_{\alpha/2;n-1}^2},\frac{\sum(x_i-\overline{x})^2}{\chi_{1-\alpha/2;n-1}^2})

Here, \alpha = 0.05, n = 7.

Therefore, \chi_{0.025;6}^2 = 14.449 and \chi_{0.975;6}^2 = 1.237

And \sum(x_i-\overline{x})^2=ns^2 = 7 x 4.11429 = 28.80003

Therefore, the 95% confidence interval for the population variance \sigma^2 is,

(1.99, 23.28) (rounded to 2 decimal places)

Next, we would like to test

H_0: \sigma^2=0.8

vs

H_a: \sigma^2\neq 0.8

using \alpha = 0.05

The test statistic for \sigma^2 (when population mean \mu is unknwon) is,

\chi^2=\frac{\sum (x_i-\overline{x})^2}{\sigma_0^2}

Here, \sum(x_i-\overline{x})^2 = 28.80003 and \sigma_0^2 = 0.8

\therefore \chi_{obs}^2 = 28.80003/0.8 = 36 (rounded to 2 decimal places)

Since, here we want to test whether population variance is equal to 0.8 or not, it is a two-sided test.

Therefore, H0 is rejected at 100\alpha% significance if

either \chi_{obs}^2>\chi_{\alpha/2;n-1}^2

or \chi_{obs}^2<\chi_{1-\alpha/2;n-1}^2

and accept otherwise.

Here, \chi_{0.025;6}^2 = 14.449 and \chi_{0.975;6}^2 = 1.237

Hence, \chi_{obs}^2>14.45

or \chi_{obs}^2<1.24

Answer: The value of s2 is 4.11429. The 95% confidence interval for the population variance \sigma^2 is 1.99 to 23.28. The test statistic \chi^2 is 36. The rejection region is \chi^2 > 14.45 or \chi^2 < 1.24.

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