At Armco’s steel plant in Middletown, Ohio, statistical quality-control methods have been used very successfully in controlling slab width on continuous casting units. The company claims that a large...

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At Armco’s steel plant in Middletown, Ohio, statistical quality-control methods have been used very successfully in controlling slab width on continuous casting units. The company claims that a large reduction in the steel slab width variance resulted from the use of these methods. Suppose that the variance of steel slab widths is expected to be 156 (squared units). A test is carried out to determine whether the variance is above the required level, with the intention to take corrective action if it is concluded that the variance is greater than 156. A random sample of 25 slabs gives a sample variance of 175. Using α = 0.05, should corrective action be taken?




Answered Same DayDec 25, 2021

Answer To: At Armco’s steel plant in Middletown, Ohio, statistical quality-control methods have been used very...

David answered on Dec 25 2021
123 Votes
We want to test right tailed hypothesis:
H0 : σ2 ≤ 156 (Null Hypothesis, H0 : σ2 = 156 is also corr
ect)
Ha : σ2 > 156 (Alternative Hypothesis, also called H1)
Given: s2 = 175, n = 31
Significance level, α = 0.05
Degrees of freedom, df = n− 1 = 30
Since this is right tailed test, we need area of α = 0.05 on the right of critical
value. Critical value is given by χ2α = χ20.05 with 30 degrees of freedom. We can
use chi-square table or excel command
CHISQ.INV(1 - 0.05, 30) = 43.772 971 825 7
Critical Value, χ20.05 =...
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