Step 1 :We are testing whether the standard deviation has decreased. The null hypothesis is that the standard deviation has not decreased, i.e., it is still 0.003 inch. The alternative hypothesis is that the standard deviation has decreased, i.e., it is less than 0.003 inch.
Step 2 :The null hypothesis is \(\mathrm{H}_{0}: \sigma = 0.003\)
Step 3 :The alternative hypothesis is \(\mathrm{H}_{1}: \sigma < 0.003\)