Part Variability is critical in the manufacturing of the ball bearings. Large variances in the size of the ball bearings cause bearing failure and rapid wear out. Production standards call for a maximum variance of .0001 when the bearing sizes are measured in inches. A sample of 15 bearings shows a sample standard deviation of .014. a. Compute the 90% confidence interval estimate of the variance of the ball bearings in the population. b. Use a= 0.10 to determine whether the sample indicates that the maximum acceptable variance is being exceeded. Use critical value approach. ( Note: You must state null and alternative hypotheses, compute the test statistic, Report the critical Value, and draw a conclusion.

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Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.