Question

In: Economics

Consider the hypothesis statement to the right. State your conclusion given that s=2.7​, n=27​, and α=0.05....

Consider the hypothesis statement to the right.

State your conclusion given that

s=2.7​,

n=27​,

and

α=0.05.

H0​:

σ2≤5.0

H1​:

σ2>5.0

LOADING...

Click the icon to view a table of​ chi-square critical values.

Calculate the appropriate test statistic.

The test statistic is

nothing.

​(Round to two decimal places as​ needed.)

Solutions

Expert Solution

As far as I can understand the question, I think we have been asked to calculate the test statistic. So, here goes. I have solved the entire hypothesis problem for you. I hope it helps. Please don't forget to upvote.

The test statistic is:

The test statistic follows chi-square distribution with n-1 degrees of freedom.

Rejection region for an upper-tailed test is:

Now, with level of significance = α=0.05 and n=27, we have:

{Look for this value in a chi-square probability distribution table}

Clearly, Test statistic doesn't fall in the critical rejection region (as 37.91 < 38.89). Therefore, there is not enough evidence to reject the null hypothesis. Therefore, with 5% level of significance we can say that σ2 ≤ 5.0.

Rahul Sunny answered 1 year ago
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