As an owner of a business, having a consistent level of sales is important. Prior to the recession that started in 2007, the standard deviation of the sales of a local business was $592. In a sample of 30 weeks since the start of the recession, sales have averaged $6800 per week with a standard deviation of $757. When testing the hypothesis (at the 5% level of significance) that the variance is higher than it was pre-recession, what is the test statistic? (please round your answer to 2 decimal places)
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
QUESTION 6
As an owner of a business, having a consistent level of sales is important. Prior to the recession that started in 2007, the standard deviation of the sales of a local business was $592. In a sample of 30 weeks since the start of the recession, sales have averaged $6800 per week with a standard deviation of $757. When testing the hypothesis (at the 5% level of significance) that the variance is higher than it was pre-recession, what is the test statistic? (please round your answer to 2 decimal places)
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