The provided sample variance is s^2 = 2.25 or sd = 1.5
and the sample size is given by n = 25.
(1) Null and Alternative Hypotheses
The following null and alternative hypotheses need to be tested:
Ho:
Ha:
This corresponds to a right-tailed test, for which a Chi-Square test for one population variance will be used.
(2) Rejection Region
Based on the information provided, the significance level is α=0.01,
and the rejection region for this right-tailed test is
R={χ2:χ2>42.98}.
(3) Test Statistics
The Chi-Squared statistic is computed as follows:
(4) Decision about the null hypothesis
Since it is observed that
χ2=26.407≤χU2=42.98,
it is then concluded that the null hypothesis is not rejected.
(5) Conclusion
It is concluded that the null hypothesis Ho is not rejected.
Therefore, there is not enough evidence to claim that the population variance σ2 or(standard deviation) is greater than 2.0449, at the 0.01 significance level.
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