A Sample of 16 Students Showed That the Variance in the Number

question 54

Essay

A sample of 16 students showed that the variance in the number of hours they spend studying is 25. At a 5% level of significance, test to see if the variance of the population is significantly different from 30.

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Definitions:

Maturity Value

The total amount that will be paid to an investor at the maturity date of a debt instrument, including principal and any accrued interest.

Interest

The cost of borrowing money, represented as a percentage of the total amount loaned, or the income earned on deposited funds.

Bank Discount

What the bank charges to hold a note until maturity (Maturity Value – Proceeds).

Discount Period

The window of time during which a payment can be made at a reduced rate.