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Estimate the variance of miles per gallon for auto model

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Reference no: EM131684411

Question: An auto manufacturing company wants to estimate the variance of miles per gallon for its auto model AST727. A random sample of 22 cars of this model showed that the variance of miles per gallon for these cars is .62.

a. Construct the 95% confidence intervals for the population variance and standard deviation. Assume that the miles per gallon for all such cars are (approximately) normally distributed.

b. Test at the 1% significance level whether the sample result indicates that the population variance is different from .30.

Reference no: EM131684411

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