We Are Interested in Testing Whether the Variance of a Population

question 29

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) H₀: σ² > 625.
• B) H₀: σ² ≤ 625.
• C) H₀: σ² ≥ 625.
• D) H₀: σ² ≤ 25.

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Definitions:

Recorded

The process of documenting financial transactions in the books of accounts as evidence of the transactions.

Relate

To establish a connection or relationship between two or more things.

Balance Sheet Accounts

Balance sheet accounts are the accounts that reflect the assets, liabilities, and shareholders' equity of a company, as recorded on the balance sheet.

Income Statement Accounts

Accounts that are used to prepare the income statement, summarizing a company's revenues, expenses, and profits over a period.