The competitive advantage of small American factories such as Tolerance Contract Manufacturing lies in their ability to produce parts with highly narrow requirements, or tolerances, that are typical in the aerospace industry. Consider a product with specifications that cal for a maximum variance in the lengths of the parts of 0.0008. Suppose the sample variance for 30 parts turns out to be s2 = 0.0009.
Use
α = 0.05
to test whether the population variance specification is being violated.
State the null and alternative hypotheses.
H0: σ2 ≤ 0.000
Ha: σ2 > 0.0008
H0: σ2 = 0.0008
Ha: σ2 ≠ 0.0008
H0: σ2 ≥ 0.0008
Ha: σ2 < 0.0008
H0: σ2 > 0.0008
Ha: σ2 ≤ 0.0008
H0: σ2 < 0.0008
Ha: σ2 ≥ 0.0008
Find the value of the test statistic.
Find the p-value. (Round your answer to four decimal places.)
p-value =
State your conclusion.
A. Reject H0. The sample does support the conclusion that the population variance specification is being violated.
B. Reject H0. The sample does not support the conclusion that the population variance specification is being violated.
C. Do not reject H0. The sample does support the conclusion that the population variance specification is being violated.
D. Do not reject H0. The sample does not support the conclusion that the population variance specification is being violated.