Test of a Single Variance · Exercise 30
For each word problem, use a solution sheet to solve the hypothesis test problem. Go to for the chi-square solution sheet. Round expected frequency to two decimal places.
You want to buy a specific computer. A sales representative of the manufacturer claims that retail stores sell this computer at an average price of $1,249 with a very narrow standard deviation of $25. You find a website that has a price comparison for the same computer at a series of stores as follows: $1,299; $1,229.99; $1,193.08; $1,279; $1,224.95; $1,229.99; $1,269.95; and $1,249. Can you argue that pricing has a larger standard deviation than claimed by the manufacturer? Use the 5 percent significance level. As a potential buyer, what would be the practical conclusion from your analysis?
OpenStax, Statistics · §11.6 Test of a Single Variance · Exercise 30
No hints for this one.
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