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A manufacturer of precision measuring instruments claims that the standard deviation in the use of the instruments is at most 0.00002 millimeter. An analyst, who is unaware of the claim, uses the instrument eight times and obtains a sample standard deviation of 0.000010 millimeter. Use a = 0.01.
(a) Calculate the test statistic x^3o to test the manufacturers claim. Round your answer to three decimal places (e.g. 98.7654).
(b) Is there sufficient evidence to support the claim that the standard deviation of the instruments is at most 0.00002?
What about these descriptive statistics makes you wary or uncomfortable? In other words, if you were a real estate agent, would you go around spouting the answers that you gave above? Explain.
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