We Are Interested in Testing Whether the Variance of a Population

question 27

Multiple Choice

We are interested in testing whether the variance of a population is significantly less than 1.44. The null hypothesis for this test is

• A) H₀: σ² < 1.44.
• B) H₀: s² ≥ 1.44.
• C) H₀: σ < 1.20.
• D) H₀: σ² ≥ 1.44.

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Definitions:

Signature Card

A document signed by an account holder at a financial institution that provides a specimen signature for the purpose of verifying future transactions.

ABA Code

A nine-digit identification number assigned to banks in the United States by the American Bankers Association, used for routing checks and electronic payments.

Federal Reserve District

One of the twelve regions established by the Federal Reserve Act, each with a Federal Reserve Bank, to regulate and oversee banking operations in the United States.

Routing Number

A unique nine-digit code used to identify a banking institution in the United States, essential for processing electronic transfers and checks.