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A Company Has Claimed That the Standard Deviation of the Monthly

question 16

Essay

A company has claimed that the standard deviation of the monthly incomes of its employees is less than or equal to $120. To test its claim, a random sample of 15 employees of the company was taken, and it was determined that the standard deviation of their incomes was $135. At a 5% level of significance, test the company's claim.


Definitions:

Evaluate

To examine or judge carefully, analyzing the value or condition of something in a detailed manner.

Personal Appearance

The way one dresses, grooms, and presents themselves physically to the outside world.

Self-Perception

An individual's awareness of and attitude towards their own character, feelings, motives, and desires.

Unrealistic Pessimistic

A tendency to expect the worst possible outcome in a situation, beyond a realistic appraisal of the actual risks or outcomes.

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