Question

A manager is interested in determining if the population standard deviation has dropped below 103. Based on a sample of n = 17 items selected randomly from the population, conduct the appropriate hypothesis test at a 0.10 significance level. The sample standard deviation is 75. State the decision rule. Select the correct choice below and, if necessary, fill in any answer boxes to complete your choice. (Round to four decimal places as needed.) O A. If the test statistic, x2 >x2 = , reject Ho. Otherwise, do not reject Ho. O B. If the test statistic, x2 > x2/2 = , reject Ho or if the test statistic, x2 <x>-1/2 , reject Ho. Otherwise, do not reject Ho. OC. If the test statistic, x2 < x2-, - , reject Ho. Otherwise, do not reject Ho. Find the test statistic, x2 x2 = (Round to two decimal places as needed.)

Answer 1

Rejection Region
This is left tailed test, for α = 0.1 and df = 16
Critical value ofx^2 is 9.3122
Hence reject H0 if x^2 < 9.3122

Test statistic,
x^2 = (n-1)*s^2/σ^2
x^2 = (17 - 1)*75^2/103^2
x^2 = 8.48

Reject H0

Option A)