Case Example

A pharmaceutical company is considering the purchase of new bottling machines to increase efficiency. The factory currently makes use of machines that fill cough syrup bottles whose volume of medicine has a standard deviation of 1.6 mL. The new machine they are considering was tested on 30 bottles, producing a batch with a standard deviation of 1.25 mL. Does this machine produce a variance less than 1.6 mL at the 0.05 significance level?

= 1.6

S = 1.25

n  = 30

We may now apply the data to the hypothesis testing procedure.