We Are Interested in Testing Whether the Variance of a Population

question 12

Multiple Choice

We are interested in testing whether the variance of a population is significantly more than 625. The null hypothesis for this test is

• A)H_o: \(\sigma\)² > 625
• B)H_o: \(\sigma\)² ? 625
• C)H_o: \(\sigma\)² ? 625
• D)H_o: \(\sigma\)² ? 25

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Definitions:

Full Capacity

Full capacity refers to the maximum level of output that a company can sustain over a period, utilizing all available resources efficiently.

External Financing Needed

The amount of funding a company must seek from outside sources to finance its planned activities when internal cash flow is insufficient.

Profit Margin

This financial ratio measures the amount of net income earned with each dollar of sales by comparing net income to net sales.

Full-capacity Sales

The maximum sales level a company can achieve with its current operational assets without additional investment.