CAS Exam MAS-I Spring 2018, Question 18

Study guide: Exam MAS-I

A random sample of 10 screw lengths is taken. The sample mean is 2.5 and the unbiased sample variance is 3.0. The underlying distribution is assumed to be normal.

You want to perform a test of the variance of screw lengths, \sigma^2.

• Null hypothesis is H_0: \sigma^2 = 6
• Alternative hypothesis is H_1: \sigma^2 < 6

Determine the result of this hypothesis test.

• A) Reject H_0 at the 0.005 level
• B) Reject H_0 at the 0.010 level, but not at the 0.005 level
• C) Reject H_0 at the 0.025 level, but not at the 0.010 level
• D) Reject H_0 at the 0.050 level, but not at the 0.025 level
• E) Do not reject H_0 at the 0.050 level

Answer this question and see the worked solution

Concepts tested

• Hypothesis Testing
• Variance
• Critical Value

More questions from this set

• CAS Exam MAS-I Spring 2018, Question 17
• CAS Exam MAS-I Spring 2018, Question 19