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.

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Definitions:

Monopolistically Competitive

A market structure where many firms sell products that are similar but slightly differentiated, allowing them some control over pricing.

Maximizing Profits

The process of adjusting production and sales strategies to generate the highest possible profit from business activities.

Economic Profit

The gap measured between comprehensive earnings and widespread costs, including both evident and implicit fees.

Fixed Costs

Costs that do not change with the level of output produced by a firm, such as rent, salaries, and insurance.