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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.
-The concentration of a drying compound is critical in gauging the final strength of an adhesive product.The standard deviation of the amount of the compound must be 1,500 parts-per-million (ppm)or less.Based on a sample of 25 mixtures,the standard deviation is 1,700 ppm.Is there reason to believe,at the 10 per cent significance level,that the standard deviation of the drying compound is more than 1,500 ppm? (Note: 1,500 ppm equals a proportion of .0015 and a percent of .000015. )
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H0 : σ2 = (1500)2 against H1 : σ2 > (1500)2
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