Perform the Indicated Hypothesis Test $$\alpha = 0.05$$

question 34

Essay

Perform the indicated hypothesis test. Be sure to do the following: identify the claim and state the null and alternative
hypotheses. Determine the critical value and rejection region. Calculate the test statistic. Decide to reject or to fail to
reject the null hypothesis and interpret the decision in the context of the original claim. Assume that the samples are
independent and that each population has a normal distribution.
-A local bank has the reputation of having a variance in waiting times as low as that of any bank in the area. A
competitor bank in the area checks the waiting time at both banks and claims that its variance of waiting times
is lower than at the local bank. The sample statistics are listed below. Test the competitorʹs claim. Use $$\alpha = 0.05$$ $\begin{array}{llcc} \text { Local Bank } & \text {Competitor Bank } \\ \text { \(\mathrm{n}_{1}=13\) } & \text { \(\mathrm{n}_{2}=16\)} \\\\ \text { \(s _1=1.69 \text {minutes}\) } & \text { \(s_2=1.43\text { minutes }\) } \\\end{array}$

Understand the concept of capital budgeting and its importance in long-term investment decisions.

Identify and explain different types of costs involved in financial decisions such as incremental cost, opportunity cost, out-of-pocket cost, sunk cost, and relevant cost.

Differentiate between relevant and irrelevant costs in decision-making processes.

Comprehend and apply the concept of the payback period and its limitations.

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Definitions:

Duty Ethics

A branch of ethics focused on the duties or moral obligations individuals have towards others, emphasizing the rightness of actions over their consequences.

Rightness

The quality or state of being morally correct, just, or honorable.

Action

The process or state of acting or doing something towards achieving a goal.

Business Strategy

A plan of action or set of decisions aimed at achieving specific business objectives and gaining a competitive advantage.