Essentials Of Statistics For Business & Economics
Essentials Of Statistics For Business & Economics
9th Edition
ISBN: 9780357045435
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: South-Western College Pub
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Chapter 11, Problem 26SE

Manufacture of Ball Bearings. Ball bearing manufacturing is a highly precise business in which minimal part variability is critical. Large variances in the size of the ball bearings cause bearing failure and rapid wearout. Production standards call for a maximum variance of .0001 inches2. Gerry Liddy has gathered a sample of 15 bearings that shows a sample standard deviation of .014 inches.

  1. a. Use α = .10 to determine whether the sample indicates that the maximum acceptable variance is being exceeded.
  2. b. Compute the 90% confidence interval estimate of the variance of the ball bearings in the population.
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Essentials Of Statistics For Business & Economics

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