The Administrator of a College Is Concerned About the Students

question 74

Essay

The administrator of a college is concerned about the students using cell phones for texting during the class hours. She randomly selects 25 students to check if the variance of the number of students in the college using cell phones during the class hours is less than 12. She arrives at a sample variance of 7. She assumes the distribution to be normal.
A) State the appropriate null and alternative hypotheses for the test.
B) Compute the value of the test statistic.
C) Use the critical value approach to test the administrator's concern at α = 0.10.
D) Repeat the test at α = 0.01.

• A) State the appropriate null and alternative hypotheses for the test.
• B) Compute the value of the test statistic.
• C) Use the critical value approach to test the administrator's concern at α = 0.10.
• D) Repeat the test at α = 0.01.

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Definitions:

Proportional Tax

A tax system where the tax rate is fixed and applied equally to all taxpayers, irrespective of income level.

Tax Liability

The total amount of tax that an individual or entity is legally obligated to pay to a taxing authority.

Tax Incidence

The manner in which the burden of a tax is shared among participants in a market.

Tax Burden

The measure of the total amount of taxes that individuals, businesses, or other entities must pay, relative to their income or profits.