# Question

Compaq Computer Corporation has an assembly plant in Houston, where the company's Deskpro computer is built. Engineers at the plant are considering a new production facility and are interested in going online with the new facility if and only if they can be fairly sure that the variance of the number of computers assembled per day using the new facility is lower than the production variance of the old system. A random sample of 40 production days using the old production method gives a sample variance of 1,288; and a random sample of 15 production days using the proposed new method gives a sample variance of 1,112. Conduct the appropriate test at α = 0.05.

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