MGM600-0803B-02 Applied Managerial Decision-Making - Phase 3 Essay - 1

MGM600-0803B-02 Applied Managerial Decision-Making - Phase 3 Individual Project - move ExampleThus the chi-square test hypothesis may be described as followsThe test statistics is calculate by the formula T = (n-1) (s/ 0)2. The main element of this formula is the proportion s/ 0 which compares the ratio of the sample modular aberrance to the target standard deviation and n is the sample size and s is the sample standard deviation. The more this ratio deviates from 1, the probability of rejecting the null hypothesis increases.Here X2 (., n-1) is the critical apprize of the chi-square distribution where n-1 represents the degree of freedom. X2a is considered as the upper critical prise and X2 1-a is considered as the lower critical apprise in the chi-square distribution.The chi-square test is performed to obtain answer questions like, whether the standard deviation is less(prenominal) than the predetermine value of standard deviation, whether the standard deviation is greater t han the predetermine value and whether the standard deviation is equal to the predetermined value (Engineering Statistics Handbook. 1.3.5.8. Chi-Square Test for the Standard Deviation).The F-test is conducted to check whether the standard deviation of two set of population or sample is equal. Like chi-square test this can either be a two-tailed test or a one-tailed test. The two-tailed variation tests against the alternative that the standard deviations is not equal and the one-tailed version tests in one direction, that is the standard deviation from the starting time population is either greater than or less than the second populations standard deviation . The option of the test is confirmed by the problem. This is applied in a case while testing a new process and when a firm wish to know if the new method is less variable than the old one. F hypothesis test is represented as followsChi-square distribution can be found out using a statistical