A Brokerage Firm Needs Information Concerning the Standard Deviation of the Account

question 114

Essay

A brokerage firm needs information concerning the standard deviation of the account balances of its customers.From previous information it was assumed to be $250. A random sample of 61 accounts was checked. Thestandard deviation was $286.20. At α = 0.01, test the firmʹs assumption. Assume that the account balances arenormally distributed.

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Definitions:

Facial Expressions

The movements or positions of the face that convey a person's emotions, thoughts, or intentions, often universally recognized across cultures.

Emotional Experience

The complex psychological state involving thoughts, feelings, physiological changes, and behaviors in response to a situation.

Galvanic Skin Response

A method of measuring the electrical conductance of the skin, which varies with its moisture level, often used as an indicator of emotional arousal.

Dilation of the Pupils

The expansion or widening of the pupils, which can occur in response to various factors such as changes in light, emotional states, or the effect of certain drugs.