A Trucking Firm Suspects That the Variance for a Certain $\alpha$

question 22

Essay

A trucking firm suspects that the variance for a certain tire is greater than 1,000,000. To check the claim, the
firm puts 101 of these tires on its trucks and gets a standard deviation of 1200 miles. If α $\alpha$ = 0.05, test the
trucking firmʹs claim using P-values.

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Definitions:

Initial Direct Costs

Expenses directly associated with acquiring or initiating a lease, which can include commissions, legal fees, and other incremental costs.

Unearned Interest Revenue-Leases

Revenue recognized from leasing transactions which has been collected but not yet earned, typically because the service period has not been completed.

Sales-type Lease

A lease agreement in which the lessor effectively transfers ownership and all risks and rewards of the asset to the lessee, resulting in immediate profit recognition.

Guaranteed Residual Value

The pre-determined value at which a leased asset is guaranteed to be worth at the end of the lease term, important for lease agreements.