The annual salaries (in dollars) of 14 randomly chosen fire fighters are listed. At a=0.05, is there enough evidence to support the claim that the standard deviation of the annual salaries is different from $5400?
Assume the population is normally distributed. Complete parts (a) through (e) below.
50,760 40,978 52,376 46,496 41,734 40,201 51,108
52,047 43,817 34,951 35,075 28,241 32,700 37,958
Write the claim mathematically and identify Ho and Ha
Find the critical value x^2o=
Identify the rejection region
Find the standardized test statistic for the x^2 test
Do we reject or fail why
Is there enough or is not enough evidence and why
H₀: σ = 5400 the standard deviation of the annual salaries is equal to $5400
H₁: σ ≠ 5400 the standard deviation of the annual salaries is different from $5400
Critical Value = for 13 degrees of freedom and 5% level of significance = 24.74
= 24.74
the rejection region will be the region in chi-square cart after the = 24.74 i.e., if test statistc is more than then hypothesis test will be rejected. the rejection will be (24.74 , infinity)
Standardised test statistic
Where S2 = sample variance = 60456301
= 26.95
since > we reject null hypothesis. that means there is statistically sufficient evidence that the standard deviation of the annual salaries is different from $5400.
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