The competitive advantage of some small American factories such as In Tolerance Contract Manufacturing lies in their ability to produce parts with very narrow requirements, or tolerances, that are typical in the aerospace industry. Consider a product with specifications that call for a maximum variance in the lengths of the parts of 0.0004. Suppose the sample variance for 26 parts turns out to be s = 0.0005. Use a = 0.05, to test whether the population variance %3D specification is being violated. Ho: sigma squared is less than or equal to 0.0004 H: sigma squared is greater than 0.0004 Test statistic- (to 2 decimals, if required) The p-value is greater than 0.10 Use Table 11.1. Do not reject the null hypothesis v The product specification does not appear to be violated. V

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Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.