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Question: A restaurant owner is concerned about the consistency of business. He wants to determine if the standard deviation of the profits for each week is less than $ 300. The profits from last week are listed below (in dollars). Assume that profits are normally distributed.
1,825 1,642 1,675 1,533 1,925 2,037 1,902
a. State the appropriate null and alternative hypotheses for the test.
b. Compute the value of the test statistic.
c. Use the critical value approach to test the owner's concern at a = 0.01.
d. Repeat the test at a = 0.10.
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