A small diner gets its eggs from two different suppliers. Uniformity of the weight of the eggs is an important quality parameter on which the suppliers are judged. A sample of 35 eggs from supplier A had a standard deviation in weight of 1.2 gm, while a sample of 45 eggs from supplier B had a standard deviation of .85gm in weight.  USING EXCEL:  a. Construct a 99% confidence interval for the standard deviation of the weight of eggs provided by supplier A b. At a 2% significance, conduct the appropriate hypothesis test to determine if there is any difference in the standard deviation of weight of eggs provided by the two suppliers.

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A small diner gets its eggs from two different suppliers. Uniformity of the weight of the eggs is an important quality parameter on which the suppliers are judged. A sample of 35 eggs from supplier A had a standard deviation in weight of 1.2 gm, while a sample of 45 eggs from supplier B had a standard deviation of .85gm in weight. 

USING EXCEL: 

a. Construct a 99% confidence interval for the standard deviation of the weight of eggs provided by supplier A

b. At a 2% significance, conduct the appropriate hypothesis test to determine if there is any difference in the standard deviation of weight of eggs provided by the two suppliers.

Expert Solution
Step 1

Given
For supplier A
sample size =35
standard deviation =1.2

For supplier B
sample size =45
standard deviation =0.85

a)
The confidence interval for standard deviation is calculated using the below shown formula
confidence interval =sn-1χ1-α2, n-1212, sn-1χα2, n-1212
For supplier A
s=1.2
n=35
degree of freedom =n-1=34
As we need 99% confidence interval
α=1-0.99=0.01
1-α2=0.995α2=0.012=0.005

Using Excel function CHISQ.INV(Probability, degree of freedom) we find the critical values 
Entering the following function in excel we get
=CHISQ.INV(0.995,34) = 58.96393
=CHISQ>INV(0.005,34) = 16.50127

Using these values we get the 99% confidence interval as shown below
confidence interval =sn-1χ1-α2, n-1212, sn-1χα2, n-1212lower limit = sn-1χ1-α2, n-1212=1.235-158.9639312=0.911upper limit = sn-1χα2, n-1212=1.235-116.5012712=1.723
The 99% confidence interval for standard deviation of weight of eggs provided by supplier A is (0.911, 1.723)

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