Essay
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Manufacturing planning wants to estimate plant capacity in order to schedule customer orders and improve on-time delivery.A random sample of ten days output gave the following results for numbers of finished components produced: 577,642,615,655,600,570,640,620,595,and 575.Planning is concerned about the variability of daily output and views as undesirable any variance above 525.
-Test at the 10% significance level the null hypothesis that the population variance for daily output does not exceed 525.
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H0 : σ2 ≤ 525 and H1 : σ2 > 525
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