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Hypothesis Testing

Chi-Square Test for Standard Deviation Claims

Description

Chi-square hypothesis testing is used to check a claim about population standard deviation or population variance. The data and samples must be random and unbiased. The population distribution must also be normal.

The test starts by stating the null and alternative hypotheses clearly and in symbo...

Transcript

Correct pricing of gold requires an accurate scale, and its accuracy is achieved by reducing the standard deviation of the mean weight.

Consider an example where a company claims that they have significantly reduced the standard deviation of their scales from 0.005 g to 0.003 g tested over 30 individual units.

To test this claim, a...

Tags

Standard Deviation TestPopulation VarianceChi-Square DistributionHypothesis TestingTest StatisticCritical ValueP-ValueConfidence LevelDegrees of FreedomNull Hypothesis