Your Company Is Evaluating Two Cloud-Based Secured Data Storage Services $\sigma$

question 51

Multiple Choice

Your company is evaluating two cloud-based secured data storage services."Pie in the Sky," the newer service, claims its uploading and downloading speeds are faster than the older service, "Cloudy but Steady Skies." You need to make a decision based on published access times for both services at different times and for varying file sizes.To make your decision, you purchase a statistical study, which indicates that average download time for Pie in the Sky is 0.77 sec.per MB and for Cloudy but Steady Skies is 0.84.Assume that n₁ = n₂ = 50, $\sigma$ ₁ = 0.2 and $\sigma$ ₂ = 0.3.With $\alpha$ = .05, the appropriate decision is ______.

• A)reject the null hypothesis \(\sigma\)₁² < \(\sigma\)₂²
• B)accept the alternate hypothesis \(\mu\)₁ − \(\mu\)₂ \(\gt\)0
• C)reject the alternate hypothesis n₁ = n₂ = 50
• D)fail to reject the null hypothesis \(\mu\)₁ − \(\mu\)₂ ≤ 0
• E)do nothing

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Definitions:

Risk Averse

A description of an individual or entity that prefers to avoid risk and would choose a certain outcome over a gamble with a potentially higher, but uncertain, return.

Portfolio

A group of investment vehicles comprising stocks, bonds, commodities, as well as cash and its equivalents, together with mutual funds and ETFs.

Adverse Selection

Adverse selection refers to a situation where sellers have information that buyers do not, or vice versa, about some aspect of product quality.

Utility Function

A mathematical representation of how consumers rank different bundles of goods according to their level of satisfaction or utility.