Here are the essential concepts you must grasp in order to answer the question correctly.
Hypothesis Testing
Hypothesis testing is a statistical method used to make decisions about a population based on sample data. It involves formulating a null hypothesis (H0) and an alternative hypothesis (H1). In this case, the null hypothesis would state that the population variance is less than or equal to 2, while the alternative hypothesis claims that it is greater than 2. The outcome of the test determines whether to reject or fail to reject the null hypothesis.
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Significance Level (α)
The significance level, denoted as α, is the probability of rejecting the null hypothesis when it is actually true, also known as a Type I error. In this scenario, α is set at 0.10, meaning there is a 10% risk of concluding that the population variance is greater than 2 when it is not. This threshold helps determine the critical value for the test statistic, guiding the decision-making process.
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Chi-Square Distribution
The Chi-Square distribution is a statistical distribution commonly used in hypothesis testing for variance and standard deviation. It is particularly relevant when the population is normally distributed, as is the case here. The test statistic for variance is calculated using the sample variance and the sample size, and it follows a Chi-Square distribution with degrees of freedom equal to n-1. This distribution helps determine the critical value needed to assess the hypothesis.
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