Here are the essential concepts you must grasp in order to answer the question correctly.
Population Variance and Standard Deviation
Population variance (σ²) measures the spread of a set of values in a population, while the standard deviation (σ) is the square root of the variance. These metrics are crucial for understanding the variability within a dataset. In hypothesis testing, they help determine if observed data significantly deviates from a hypothesized value.
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Hypothesis Testing
Hypothesis testing is a statistical method used to make inferences about population parameters based on sample data. It involves formulating a null hypothesis (H0) and an alternative hypothesis (H1), then using sample statistics to determine whether to reject H0. In this case, the null hypothesis would state that the population variance is less than or equal to 19.
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Level of Significance (α)
The level of significance (α) is the probability of rejecting the null hypothesis when it is actually true, commonly set at 0.05 or 0.1. In this scenario, α=0.1 indicates a 10% risk of concluding that the population variance exceeds 19 when it does not. This threshold helps determine the critical value for making decisions in hypothesis testing.
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