Exhibit 11-1

question 80

Multiple Choice

Exhibit 11-1.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 listed below (in dollars. ) Assume that profits are normally distributed. Refer to Exhibit 11-1.Test Becky's concern using the critical value approach at α = 0.05.What is the result?

• A)We reject H₀ since the value of the test statistic is greater than .
• B)We do not reject H₀ since the value of the test statistic is greater than .
• C)We reject H₀ since the value of the test statistic is less than .
• D)We do not reject H₀ since the value of the test statistic is less than

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Definitions:

Specification Fill Weight

A quality control measure used in manufacturing to ensure that products meet a predetermined weight threshold.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much individual values deviate from the mean of the set.

Historical Analogy

A method of reasoning or argument in which a situation in the past is compared to a current situation.

Forecast

Forecast is the process of making predictions of future based on past and present data.