company is checking the variance in units produced by two of its plants. Management believes the var - (NOTE: A large variance often signals an opportunity for "improvement"). A statistical test was done to ignificant difference between the variances of the two plants. Use alpha = .10 Plant 1 Plant 2 163,000 150,000 147,000 145,000 337,000 230,000 234,000 215,000 245,000 170,000 285,000 165,000 225,000 185,000 225,000 a. Hg: 4 - 4, =0

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A company is checking the variance in units produced by two of its plants. Management believes the variance for Plant 1 is greater than Plan
2. (NOTE: A large variance often signals an opportunity for "improvement"). A statistical test was done to determine whether there is a
significant difference between the variances of the two plants. Use alpha = .10
Plant 1
Plant 2
163,000
150,000
147,000
145,000
337,000
230,000
234,000
215,000
245,000
170,000
285,000
165,000
225,000
185,000
225,000
a. H: 4 - 4, =0
b. H,:o = o}
c. H:o so;
d. Họ: 4 - 14 S0
1. Select the null hypotheses from above.
2. What test is needed?
3. Compute the test statistic
(Round to the second (2nd) decimal place)
4. Provide the p-value
(Round to the fourth (4th) decimal place)
5. What do you conclude?
6. What is your management decision?
Transcribed Image Text:A company is checking the variance in units produced by two of its plants. Management believes the variance for Plant 1 is greater than Plan 2. (NOTE: A large variance often signals an opportunity for "improvement"). A statistical test was done to determine whether there is a significant difference between the variances of the two plants. Use alpha = .10 Plant 1 Plant 2 163,000 150,000 147,000 145,000 337,000 230,000 234,000 215,000 245,000 170,000 285,000 165,000 225,000 185,000 225,000 a. H: 4 - 4, =0 b. H,:o = o} c. H:o so; d. Họ: 4 - 14 S0 1. Select the null hypotheses from above. 2. What test is needed? 3. Compute the test statistic (Round to the second (2nd) decimal place) 4. Provide the p-value (Round to the fourth (4th) decimal place) 5. What do you conclude? 6. What is your management decision?
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