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Crawford Industries Purchases Step-Down Electrical Converters from Two Suppliers

Question 58

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Crawford Industries purchases step-down electrical converters from two suppliers.The converters from the two suppliers appear to have the same average life (measured in hours) but the variability in useful life appears be different for the units provided by the two suppliers.In random samples of 8 converters from supplier A and 8 converters from supplier B, the standard deviation in sample A was 40 hours; the standard deviation in sample Bwas 55 hours.Assume that transformer life is normally distributed in each population..Test the null hypothesis that population variance B is no greater than the population variance A, against the alternative hypothesis that the population variance B is greater than the population variance A.Use a significance level of 5% for this one-tailed test and report your conclusion.


A) Since Fstat is greater than Fc, we cannot reject the "B no greater than A" null hypothesis.
B) Since Fstat is less than Fc, we can reject the "B no greater than A" null hypothesis.
C) Since Fstat is greater than Fc, we can reject the "B no greater than A" null hypothesis.
D) Since Fstat is less than Fc, we cannot reject the "B no greater than A" null hypothesis

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