Time left 0:57:32 Toll Brothers is a luxury home builder that would like to test the hypothesis that the variance for the size of new homes exceeds 160000 (square feet). The square footage for a random sample of 25 new homes was recorded. The standard deviation for this sample was found to be 390 square feet. Test this hypothesis using a = 0.10. a) What is the parameter of interest? ( b) State the null and the alternatíve hypotheses. (1 c) What is the appropriate test statistic?

A First Course in Probability (10th Edition)
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Time left 0:57:32
Toll Brothers is a luxury home builder that would like to test the hypothesis that the variance for the size of new homes
exceeds 160000 (square feet). The square footage for a random sample of 25 new homes was recorded. The standard
deviation for this sample was found to be 390 square feet. Test this hypothesis using a = 0.10.
a) What is the parameter of interest? (
b) State the null and the alternative hypotheses. (1
c) What is the appropriate test statistic?
d) Calculate the test statistic. (
e) What is the degrees of freedom? Find the required table value(s) to test the hypothesis by using the critical value
approach.
f) State the rejection criterion (use the critical value approach)
g) Write your decision and draw your conclusion. **
Transcribed Image Text:Time left 0:57:32 Toll Brothers is a luxury home builder that would like to test the hypothesis that the variance for the size of new homes exceeds 160000 (square feet). The square footage for a random sample of 25 new homes was recorded. The standard deviation for this sample was found to be 390 square feet. Test this hypothesis using a = 0.10. a) What is the parameter of interest? ( b) State the null and the alternative hypotheses. (1 c) What is the appropriate test statistic? d) Calculate the test statistic. ( e) What is the degrees of freedom? Find the required table value(s) to test the hypothesis by using the critical value approach. f) State the rejection criterion (use the critical value approach) g) Write your decision and draw your conclusion. **
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