The null hypothesis: H0: "\\sigma^2 <= 0.36"
The alternative hypothesis: Ha: "\\sigma^2 > 0.36"
For 0.05 significance level and (n-1 = 17) degrees of freedom; critical value of "\\chi^2 = 27.587"
Decision rule: reject Ho if the test statistic "\\chi^2 > 27.587"
The test statistic
"\\chi^2 =\\frac{(n-1) \\times s^2}{\\sigma^2}"
"\\chi^2 = \\frac{17 \\times 0.68}{0.36} = 32.111"
As test statistic is higher than the critical value we reject the null hypothesis.
So, we have sufficient evidence to conclude at 0.05 significance level that the population variance is greater than 0.36 level and process is out of control.
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