Becky Owns a Diner and Is Concerned About Sustaining the Business

Multiple Choice

Becky owns a diner and is concerned about sustaining the business. She wants to ascertain if the standard deviation of the profits for each week is greater than $250. The details of the profits for the week are (in dollars) 1,743 1,438 1,212 1,705 1,985 1,857 1,916
Assume that profits are normally distributed. Which of the following are appropriate hypotheses to test Becky's concern?

A) Η₀: σ² = 62,500, Η_A: σ² ≠ 62,500
B) Η₀: σ² < 62,500, Η_A: σ² ≥ 62,500
C) Η₀: σ² ≤ 62,500, Η_A: σ² > 62,500
D) Η₀: σ² ≥ 62,500, Η_A: σ² < 62,500