A small business has 37 employees Because of the uncertain d

A small business has 37 employees. Because of the uncertain demand for its product, the company usually pays overtime on any given week. The company assumed that about 50 total hours of overtime per week is required and that the standard deviation on this figure is about 5. Company officials want to know whether the standard deviation of overtime hours has changed. They gather data on a sample of 16 weeks of overtime data (in hours per week).

a) What is the appropriate null and alternate hypothesis to conclude the standard deviation of overtime per week has changed?

b) Using a = 0.05, draw a conclusion for the hypothesis test. State your conclusion in the context of the problem.

A small business has 37 employees. Because of the uncertain demand for its product, the company usually pays overtime on any given week. The company assumed that about 50 total hours of overtime per week is required and that the standard deviation on this figure is about 5. Company officials want to know whether the standard deviation of overtime hours has changed. They gather data on a sample of 16 weeks of overtime data (in hours per week). a) What is the appropriate null and alternate hypothesis to conclude the standard deviation of overtime per week has changed? b) Using a = 0.05, draw a conclusion for the hypothesis test. State your conclusion in the context of the problem.

Solution

a) Ho: Stanfard deviation =5

Ha:Standard deviation =/ (not equal to) 5

b)Due to the high P values (greater than .05) there is not sufficent evidence to conclude that it has changed from 5.