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Consumers may be interested in whether the cost of a particular calculator varies from store to store. Based on surveying 43 stores, which yielded a sample mean of \(84 and a sample standard deviation of \)12, test the claim that the standard deviation is greater than $15.

Short Answer

Expert verified

Taking α=0.05, we can see that p>α. This means that we cannot reject null hypothesis.

There is insufficient evidence to conclude that the standard deviation is greater than 15.

Step by step solution

01

Given Information

We want to test these hypotheses:

H0:σ≤15

H1:σ>15

We are given a sample from n=43stores with standard deviation s=12.

02

Explanation

This means that the number of degrees of freedom is

n-1=43-1=21

We are using χ2distribution. The test statistic is given by:

χ2=42·s2152=26.88

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