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Becky Owns a Diner and Is Concerned About Sustaining the Business

Question 113

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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. Using the critical value approach at α = 0.05, which of the following is the correct conclusion for Becky's concern?


A) We reject H0 because the value of the test statistic is greater than 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. Using the critical value approach at α = 0.05, which of the following is the correct conclusion for Becky's concern? A) We reject H<sub>0</sub> because the value of the test statistic is greater than = 1.635. B) We do not reject H<sub>0 </sub>because the value of the test statistic is greater than = 1.635. C) We reject H<sub>0</sub> because the value of the test statistic is less than = 12.592. D) We do not reject H<sub>0</sub> because the value of the test statistic is less than = 12.592. = 1.635.
B) We do not reject H0 because the value of the test statistic is greater than 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. Using the critical value approach at α = 0.05, which of the following is the correct conclusion for Becky's concern? A) We reject H<sub>0</sub> because the value of the test statistic is greater than = 1.635. B) We do not reject H<sub>0 </sub>because the value of the test statistic is greater than = 1.635. C) We reject H<sub>0</sub> because the value of the test statistic is less than = 12.592. D) We do not reject H<sub>0</sub> because the value of the test statistic is less than = 12.592. = 1.635.
C) We reject H0 because the value of the test statistic is less than 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. Using the critical value approach at α = 0.05, which of the following is the correct conclusion for Becky's concern? A) We reject H<sub>0</sub> because the value of the test statistic is greater than = 1.635. B) We do not reject H<sub>0 </sub>because the value of the test statistic is greater than = 1.635. C) We reject H<sub>0</sub> because the value of the test statistic is less than = 12.592. D) We do not reject H<sub>0</sub> because the value of the test statistic is less than = 12.592. = 12.592.
D) We do not reject H0 because the value of the test statistic is less than 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. Using the critical value approach at α = 0.05, which of the following is the correct conclusion for Becky's concern? A) We reject H<sub>0</sub> because the value of the test statistic is greater than = 1.635. B) We do not reject H<sub>0 </sub>because the value of the test statistic is greater than = 1.635. C) We reject H<sub>0</sub> because the value of the test statistic is less than = 12.592. D) We do not reject H<sub>0</sub> because the value of the test statistic is less than = 12.592. = 12.592.

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