Travelocity Would Like to Test If the Standard Deviation for Roundtrip

question 13

Multiple Choice

Travelocity would like to test if the standard deviation for roundtrip airfares between New York and London is less than $200. A random sample of 22 roundtrip airfares between New York and London had a standard deviation of $142. Using α = 0.05, the conclusion for this hypothesis test would be that because the test statistic is ______.

• A)more than the critical value, we fail to reject the null hypothesis and cannot conclude that the standard deviation for the roundtrip airfares between New York and London is less than $200
• B)less than the critical value, we can reject the null hypothesis and conclude that the standard deviation for the roundtrip airfares between New York and London is less than $200
• C)less than the critical value, we fail to reject the null hypothesis and cannot conclude that the standard deviation for the roundtrip airfares between New York and London is less than $200
• D)more than the critical value, we can reject the null hypothesis and conclude that the standard deviation for the roundtrip airfares between New York and London is less than $200

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