At the insistence of a government inspector, a new safety device is installed in an assembly-line operation. After the installation of this device, a random sample of 8 days’ output gave the following results for numbers of finished components produced:618 660 638 625 571 598 639 582Management is concerned about the variability of daily output and views any variance above 500 as undesirable. Test, at the 10% significance level, the null hypothesis that the population variance for daily output does not exceed 500.

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At the insistence of a government inspector, a new safety device is installed in an assembly-line operation. After the installation of this device, a random sample of 8 days’ output gave the following results for numbers of finished components produced:
618 660 638 625 571 598 639 582

Management is concerned about the variability of daily output and views any variance above 500 as undesirable. Test, at the 10% significance level, the null hypothesis that the population variance for daily output does not exceed 500.

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x¯=Σxn=618+660+......+5828=616.375s=Σx-x¯2n-1=618-616.3752+660-616.3752+......+582-616.37528-1=30.56

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