Setting hypotheses for computing population variance

Reference no: EM1321956

Q1) You are attempting to prove that variance of dollar value of products purchased on line for certain target market is greater than $100. To test this you choose a random sample of 20 customers and determine that variance of this sample is $150.

a) Set up hypotheses and test to find out whether or not population variance is larger than $100.

b) Based on your sample variance, create a 95% confidence interval, which will contain the true variance 95% of the time. This is, of course, by definition of confidence interval.

Q2) 3 methods of treating water were undertaken at 2 different water treatment plants. Each method was tried for one month and a score (from 1 to 100) was assigned by plant managers on effectiveness of the method (100 is maximum effectiveness).

Treatment Method
Plant Types	(1)	(2)	(3)
Plant 1	46	74	61
Plant 2	52	78	67

a) Use randomized block analysis of variance to test if there is difference in means of 3 methods and between two plants.

b) If methods vary then employ the Tukey procedure to find out which treatments are more effective relative to each other.

Reference no: EM1321956

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