Suppose Apple Would Like to Test the Hypothesis That the Standard

question 21

Multiple Choice

Suppose Apple would like to test the hypothesis that the standard deviation for the web-browsing battery life of the iPad is different from 3.0 hours. The following data represents the battery life, in hours, experienced by a random sample of six users: 10 14 12 16 10 6.
Which of the following would be the correct hypothesis test?

• A) H₀: σ² ≤ 3.0, H_A: σ² > 3.0
• B) H₀: σ = 3.0, H_A: σ ≠ 3.0
• C) H₀: σ² ≥ 9.0, H_A: σ² < 9.0
• D) H₀: σ² = 9.0, H_A: σ² ≠ 9.0

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Definitions:

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the company remains the same.

Market Value

The market price at which an asset or service can be transacted currently.

Shares Outstanding

The total number of shares of a corporation that have been authorized, issued, and purchased by investors and are held by them.

Debt-Equity Ratio

A metric indicating the balance between shareholders' equity and debt in financing a company's assets.