David Desreumaux, VP of Human Resources of American First Banks $\alpha$

question 41

Multiple Choice

David Desreumaux, VP of Human Resources of American First Banks (AFB) , is reviewing the employee training programs of AFB.Based on a recent census of personnel, David knows that the variance of teller training time in the southeast region is 8, and he wonders if the variance in the southwest region is the same number.His staff randomly selected personnel files for 15 tellers in the southwest region, and determined that their mean training time was 25 hours and that the standard deviation was 4 hours.Assume that teller training time is normally distributed.Using $\alpha$ = 0.10, the null hypothesis is ________.

• A)\(\mu\) = 25
• B)\(\sigma\)² = 8
• C)\(\sigma\)² = 4
• D)\(\sigma\)² \(\le\) 8
• E)s² = 16

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Definitions:

Mutually Exclusive

Events or decisions that cannot occur or be taken simultaneously; selecting one option precludes the choice of the other.

Profitability Index

A financial metric used to evaluate the desirability of an investment or project, calculated as the present value of future cash flows divided by the initial investment cost.

Cash Outflow

The total amount of money being spent by a business, including expenses, investments, and any other payments.

Equivalent Annual Annuity

The constant annual cash flow for a certain period of time that has the same present value as a series of different cash flows.