At a significance level of 0.01, the data indicates that the drug's variance in tablets is less than the desired 0.04. The calculated chi-square value (8.4675) is below the critical value, leading to rejecting the null hypothesis.
To determine if the data suggests, at a significance level
of 0.01, that the variance of the drug in the tablets is less than the desired amount (0.04), we will perform a hypothesis test for the variance.
Given:
Desired variance
: 0.04
Sample size
: 12
Sample variance
: 0.0291
Significance level
: 0.01
State the null and alternative hypotheses.
Null hypothesis
:

Alternative hypothesis

Select the appropriate test.
Since we're comparing variances and testing whether the sample variance is less than the given variance, we will use the chi-square
distribution to test the hypothesis.
Determine the critical value.
Given
and degrees of freedom
as
, find the critical value from the chi-square distribution table for

Calculate the test statistic.
The test statistic
is calculated as
which follows a chi-square distribution.
![\[ \chi^2 = \frac{{(n - 1) \cdot s^2}}{{\sigma^2}} = \frac{{11 \cdot 0.0291}}{{0.04}} \]](https://img.qammunity.org/2024/formulas/mathematics/college/tkqnswsndc35fnrbv5jc3ueg80nb0uqccn.png)
Make a decision.
If the calculated
value is less than the critical value from the chi-square distribution table, we reject the null hypothesis.
If the calculated
value is greater than or equal to the critical value, we fail to reject the null hypothesis.
Let's proceed with the calculations to find the critical value and test statistic
Determine the critical value.
From the chi-square distribution table with
and
, the critical value is approximately 19.675.
Calculate the test statistic.
![\[ \chi^2 = \frac{{(n - 1) \cdot s^2}}{{\sigma^2}} = \frac{{11 \cdot 0.0291}}{{0.04}} = 8.4675 \]](https://img.qammunity.org/2024/formulas/mathematics/college/6ls5kppl9jukn875tg0e87okl4knekyepw.png)
Make a decision.
The calculated
is less than the critical value (19.675). Therefore, we reject the null hypothesis.
At a significance level of
the data suggests that the variance of the drug in the tablets is less than the desired amount of 0.04.