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In: Statistics and Probability

It is desired to determine whether there is less variability in the silver plating done by...

It is desired to determine whether there is less variability in the silver plating done by Company 1 than in that done by Company 2. If independent random samples of size 12 of the two companies’ work yield standard deviations s1 = 0.035 mil and s2 = 0.062 mil respectively, test the null hypothesis that there is no difference in variances (σ1^2 = σ2^2) against the alternative hypothesis that variance of company 1 is smaller as compared to variance of company 2 (σ1^2 < σ2^2) at the 0.05 level of significance.

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