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A manufacturing process drills holes in sheet metal that are supposed to be .5000 cm in diameter. Before and after a new drill press is installed, the hole diameter is carefully measured for 12 randomly chosen parts. At a = .05, can we conclude that the new drill has a diffrent variance?New drill.5005 .5010 .5024 .4988 .4997 .4995.5014 .4995 .4988 .4992 .5042 .4967Old drill.5052 .5053 .4947 .4907 .5031 .4923.5040 .5035 .5061 .4956 .5035 .4962A, What test should I run?B. State the null and AltrenativeC. What is the significance level?D.Find the crital value?E. Compute the value of the statisticF. What is the decision regading the null hypothesis? Intrepret the results

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Answer:

a) F test is a statistical test that uses a F Statistic to compare two population variances, with the sample deviations s1 and s2. The F statistic is always positive number since the variance it's always higher than 0. The statistic is given by:


F=(s^2_2)/(s^2_1)

b) H0:
\sigma^2_1 = \sigma^2_2

H1:
\sigma^2_1 \\eq \sigma^2_2

c)
\alpha=0.05 represent the significance level provided

Confidence =0.95 or 95%

d) We need to calculate the degrees of freedom first. For the numerator we have
n_2 -1 =12-1=11 and for the denominator we have

We can find the critical value on the F table or with the following excel code: "=F.INV(1-0.025,11,11)"

And we got
F_(critc)=3.474

e)
F=(s^2_2)/(s^2_1)=(0.0056^2)/(0.0019^2)=8.68

f) Since our calculated value 8.68 is higher than the critical value of 3.474 we have enough evidence to reject the null hypothesis and at 5 % of significance we can conclude that the two variances are different.

Explanation:

Data given and notation

We can calculate the mean and deviation with the following formulas:


\bar X =(\sum_(i=1^n X_i))/(n)


s= (\sum_(i=1)^n (X_i -\bar X)^2)/(n-1)


n_1 = 12 represent the sampe size for the new drill


n_2 =12 represent the sample size for the old drill


\bar X_1 =0.500 represent the sample mean for the new drill


\bar X_2 =0.500 represent the sample mean for the old drill


s_1 = 0.0019 represent the sample deviation for the new drill


s^2_1 = 3.76x10^(-6) represent the sample variance for the new drill

represent the sample deviation for the old drill


s^2_2 = 3.18x10^(-5) represent the sample variance for the old drill

Part a

F test is a statistical test that uses a F Statistic to compare two population variances, with the sample deviations s1 and s2. The F statistic is always positive number since the variance it's always higher than 0. The statistic is given by:


F=(s^2_2)/(s^2_1)

Solution to the problem

Part B: System of hypothesis

We want to test if the variation for oil stocks it's higher than the variation for utility stocks, so the system of hypothesis are:

H0:
\sigma^2_1 = \sigma^2_2

H1:
\sigma^2_1 \\eq \sigma^2_2

Part c: Significance level


\alpha=0.05 represent the significance level provided

Confidence =0.95 or 95%

Part D: Critical value

We need to calculate the degrees of freedom first. For the numerator we have
n_2 -1 =12-1=11 and for the denominator we have

We can find the critical value on the F table or with the following excel code: "=F.INV(1-0.025,11,11)"

And we got
F_(critc)=3.474

Part E :Calculate the statistic

Now we can calculate the statistic like this:


F=(s^2_2)/(s^2_1)=(0.0056^2)/(0.0019^2)=8.68

Part F: Decision

Since our calculated value 8.68 is higher than the critical value of 3.474 we have enough evidence to reject the null hypothesis and at 5 % of significance we can conclude that the two variances are different.

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