Question 175705
The records of a casualty insurance company show that, in the past, its clients have had a mean of  auto accidents per day with a variance of 1.8 . The actuaries of the company claim that the variance of 0.0016 the number of accidents per day is no longer equal to 0.0016 . Suppose that we want to carry out a hypothesis test to see if there is support for the actuaries' claim. State the null hypothesis Ho  and the alternative hypothesis Hi  that we would use for this test. 

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Ho: sigma^2 = 1.8
Ha: sigma^2 is not equal to 1.8
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Cheers,
Stan H.