The Sample Standard Deviation of the Monthly Sales (In Thousands

question 17

Essay

The sample standard deviation of the monthly sales (in thousands of dollars)of a telecommunications firm in the United States for two years,2010 and 2011,is computed as 6.7.Assuming that the sales data are drawn from a normally distributed population,conduct the following hypothesis tests for the population variance.Use the critical value approach at α = 0.05.
a.H₀:σ₂ ≤ 25,H_A:σ² > 25
b.H₀:σ₂ = 36,H_A:σ² ≠ 36

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Definitions:

Spending Multiplier

The ratio of change in aggregate output (or income) to a change in spending that caused the change, showing how initial spending leads to increased total spending.

Autonomous Investment

Investment that does not change in response to alterations in the overall economy or income levels, such as public infrastructure investments.

Equilibrium Real GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand, adjusted for inflation.

Planned Aggregate Expenditure

The total amount households, businesses, and the government plan to spend on goods and services at different levels of national income.