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Q4. A large company has claimed that the standard deviation of the monthly incomes of their employees is less than or equal to $120. To test their claim, a random sample of 76 employees of the company was taken; and it was determined that the standard deviation of their incomes was $135. At 90% confidence, test the company's claim. 1. Formulate the null and alternative hypotheses. 2. Select the significance level. 3. Select the test statistic and calculate its value. 4. Identify critical value for the test statistics and state the decision rule. 5. Compare calculated and critical values and reach a conclusion. 6. Make a related business decision.

Q4. A large company has claimed that the standard deviation of the monthly incomes of their employees is less than or equal to $120. To test their claim, a random sample of 76 employees of the company was taken; and it was determined that the standard deviation of their incomes was $135. At 90% confidence, test the company's claim. 1. Formulate the null and alternative hypotheses. 2. Select the significance level. 3. Select the test statistic and calculate its value. 4. Identify critical value for the test statistics and state the decision rule. 5. Compare calculated and critical values and reach a conclusion. 6. Make a related business decision.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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Q4. A large company has claimed that the standard deviation of the monthly incomes of their employees is less than or equal to $120. To test their claim, a random sample of 76 employees of the company was taken; and it was determined that the standard deviation of their incomes was $135. At 90% confidence, test the company's claim. 1. Formulate the null and alternative hypotheses. 2. Select the significance level. 3. Select the test statistic and calculate its value. 4. Identify critical value for the test statistics and state the decision rule. 5. Compare calculated and critical values and reach a conclusion. 6. Make a related business decision.
Transcribed Image Text:Q4. A large company has claimed that the standard deviation of the monthly incomes of their employees is less than or equal to $120. To test their claim, a random sample of 76 employees of the company was taken; and it was determined that the standard deviation of their incomes was $135. At 90% confidence, test the company's claim. 1. Formulate the null and alternative hypotheses. 2. Select the significance level. 3. Select the test statistic and calculate its value. 4. Identify critical value for the test statistics and state the decision rule. 5. Compare calculated and critical values and reach a conclusion. 6. Make a related business decision.
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