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A coffee machine is supposed to dispense 6 ounces of coffee into a paper cup. In reality the amount dispensed varies from cup to cup. If the machine is working properly the manufacturer estimates that the standard deviation is 0.2 ounces. A random sample of 15 cups was taken and the sample standard deviation was found to be 0.154 ounces.
We want to conduct an appropriate test to determine if the standard deviation is greater than 0.2 ounces. Assume a level of significance of 2%. What are the hypotheses? What is the maximum probability that you are willing to commit a Type I error? What is the value of the test statistic for a test to determine if the standard deviation is greater than 0.2 ounces? In a test to determine if the standard deviation is greater than 0.2 ounces, what is the p-value? In a test to determine if the standard deviation is greater than 0.2 ounces, what is your decision? In a test to determine if the standard deviation is greater than 0.2 ounces, what is your conclusion?
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