Becky Owns a Diner and Is Concerned About Sustaining the Business

question 120

Multiple Choice

Becky owns a diner and is concerned about sustaining the business. She wants to ascertain if the standard deviation of the profits for each week is greater than $250. The details of the profits for the week are (in dollars) 1,743 1,438 1,212 1,705 1,985 1,857 1,916
Assume that profits are normally distributed. Which of the following are appropriate hypotheses to test Becky's concern?

• A) Η₀: σ² = 62,500, Η_A: σ² ≠ 62,500
• B) Η₀: σ² < 62,500, Η_A: σ² ≥ 62,500
• C) Η₀: σ² ≤ 62,500, Η_A: σ² > 62,500
• D) Η₀: σ² ≥ 62,500, Η_A: σ² < 62,500

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Definitions:

Obsession

A persistent, intrusive, and unwanted thought or urge that causes distress or anxiety.

Impaired Reasoning

A reduction in the ability to think logically and make clear, rational decisions or judgments.

Information Processing

A cognitive approach that describes the ways in which human beings process, store, retrieve, and use information.

OCD

Obsessive-Compulsive Disorder, a mental health condition characterized by unwanted repetitive thoughts (obsessions) and actions (compulsions).