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(i) Give the value of the level of significance.

State the null and alternate hypotheses.

H0: σ2 < 0.0529; H1: σ2 = 0.0529

H0: σ2 = 0.0529; H1: σ2 > 0.0529

H0: σ2 = 0.0529; H1: σ2 < 0.0529

H0: σ2 = 0.0529; H1: σ2 ≠ 0.0529

(ii) Find the sample test statistic. (Round your answer to two decimal places.)

(iii) Find or estimate the P-value of the sample test statistic.

P-value > 0.100

0.050 < P-value < 0.100

0.025 < P-value < 0.050

0.010 < P-value < 0.025

0.005 < P-value < 0.010

P-value < 0.005

(iv) Conclude the test.

Since the P-value ≥ α, we fail to reject the null hypothesis.

Since the P-value < α, we reject the null hypothesis.

Since the P-value < α, we fail to reject the null hypothesis.

Since the P-value ≥ α, we reject the null hypothesis.

(v) Interpret the conclusion in the context of the application.

At the 1% level of significance, there is sufficient evidence to conclude that the variance has increased and the machine needs to be adjusted.

At the 1% level of significance, there is insufficient evidence to conclude that the variance has increased and the machine needs to be adjusted.