Chi-square test for a variance

EasyStatistics~3m

A manufacturer's bolts should have diameter variance at most 0.0002 cm20.0002\text{ cm}^2. A sample of 1212 bolts has sample variance 0.00030.0003. To test H0:σ2=0.0002H_0: \sigma^2 = 0.0002, what is the value of the appropriate test statistic?

Show hints (2)+
  1. Variance test statistic: χ2=(n−1)s2σ02\chi^2=\tfrac{(n-1)s^2}{\sigma_0^2}.
  2. 11⋅0.00030.0002=11⋅1.5\tfrac{11\cdot 0.0003}{0.0002}=11\cdot 1.5.

Answer

Reveal answer →

16.5 (± 0.05)

Create a free account to see the full worked solution and track your progress.

Interview format: Hedge Fund Quant, Prop Trading

Related questions