Question
Hypothesis Test - Single Population Standard Deviation & Variance 1.Last year (Tax Year 2019), the standard deviation of tax return refunds was $2,347.You would like
Hypothesis Test - Single Population Standard Deviation & Variance
1.Last year (Tax Year 2019), the standard deviation of tax return refunds was $2,347.You would like to see if the standard deviation (variability) has increased this tax season (2020).You randomly select 28 tax returns with refunds and get a standard deviation of $2,951.Conduct a hypothesis test to see if the standard deviation (variability) has increased this tax season and use a level of significance of .05.
A.What is the test statistics value (correct number of decimal places depending on which test statistic)?
B.What is the probability of the test statistic for this specific problem? (take into consideration if this is 1-tail or 2-tail test)
C.What conclusion will you come to? Use a level of significance of .05.
D.Using the critical value approach at what critical value or values will you start rejecting the null hypothesis?
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