Question

Exhibit 11-10 n = 81 s2 = 625 H0: σ2 = 500 Ha: σ2 ≠ 500 The test statistic for this problem equals _____.

a. 101.25
b. 64
c. 100
d. 101.88

Answer 1

`\chi^2 =(81-1)/(500) 625 =100`

c. 100

Explanation:

Notation and previous concepts

A chi-square test is "used to test if the variance of a population is equal to a specified value. This test can be either a two-sided test or a one-sided test. The two-sided version tests against the alternative that the true variance is either less than or greater than the specified value"

`n=81` represent the sample size

`\alpha` represent the confidence level

`s^2 =625` represent the sample variance obtained

`\sigma^2_0 =500` represent the value that we want to test

Null and alternative hypothesis

On this case we want to check if the population variance specification is violated, so the system of hypothesis would be:

Null Hypothesis:
`\sigma^2 = 500`

Alternative hypothesis:
`\sigma^2 \\eq 500`

Calculate the statistic

For this test we can use the following statistic:

`\chi^2 =(n-1)/(\sigma^2_0) s^2`

And this statistic is distributed chi square with n-1 degrees of freedom. We have eveything to replace.

`\chi^2 =(81-1)/(500) 625 =100`

c. 100

Calculate the p value

In order to calculate the p value we need to have in count the degrees of freedom , on this case 80. And since is a right tailed test the p value would be given by:

`p_v =2*P(\chi^2 >100)=0.129`

In order to find the p value we can use the following code in excel:

"=2*(1-CHISQ.DIST(100,80,TRUE))"