The Manager of a Video Library Would Like the Variance

Multiple Choice

The manager of a video library would like the variance of the waiting times of the customers not to exceed 2.30 minutes-squared. He would like to add an additional billing counter if the variance exceeds the cut-off. He checks the recent sample data. For a random sample of 24 customer waiting times, he arrives at a sample variance of 3.8 minutes-squared. The manager assumes the waiting times to be normally distributed. Which of the following is the correct approximation of the p-value used to conduct this test?

A) p-value lies between 0.005 and 0.010
B) p-value lies between 0.010 and 0.025
C) p-value lies between 0.050 and 0.10
D) p-value lies between 0.025 and 0.05