[College Statistics] Hypothesis Testing

The Washington Metropolitan Area Transit Authority (WMATA) wants to promote an image of reliability by encouraging its drivers to maintain consistent schedules. As a standard policy the company would like arrival times at bus stops to have low variability. In terms of the variance of arrival times, the company standard specifies an arrival time variance of 4 or less when arrival times are measured in minutes. WMATA wants to determine whether the arrival time population variance is excessive, so it takes a random sample of 24 GCRTA bus arrivals taken at a downtown intersection. The sample variance turns out to be s2 = 4.9.

A. Using the partial Excel output provided below and a significance level of α = .05, is the variance in bus arrival times excessive? Do a complete and appropriate hypothesis test using the critical value approach and the 5-step procedure discussed in class.

The partial information I was given:
4.900 = observed variance of Arrival Times
24 = n

The 5 Step Procedure is 1. Form Null/Alternate Hypothesis, 2. Formulate a decision rule for rejecting Ho 3. Calculate the value of the Test Statistic 4. Evaluate Ho 5. State the practical implications of the hypothesis test in plain English.

Im trying to figure out how to start off on this one. The way its worded is throwing me off and Im not sure where to begin with the information given. I know standard deviation has to be 2.214 rounded so with me knowing the Std dev wouldnt that call for Z-table distribution?

EDIT: Actually im beginning to see that its probably Chi-Square

Posted Feb 25, 2016, 1:08 AM UTC · edited

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