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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.
-A large milling machine produces steel rods.The machine is considered to be operating within customer specifications if the standard deviation of the diameter of the rods is 0.15 inches.As line supervisor,you need to demonstrate whether the machine is capable of meeting customer specifications.Based on a sample of 25 rods,the sample standard deviation is 0.19.Is there sufficient evidence at the 5% significance level to conclude that the machine is not operating within the customer tolerances?
Correct Answer:

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H0 : σ2 = (0.15) 2 against H1 : σ2 > (0.15)2
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