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Chi-Square Test of Variance: Annual Salaries of Actuaries

The annual salaries of 16 randomly chosen actuaries are listed below. At ? = 0.02can you conclude the standard deviation of the annual salaries is greater than $20,000? Use the P-value method to perform the hypothesis test.

P = _______(round to four decimal places as needed)

Solution Summary

The solution provides step by step method for the calculation of testing of hypothesis. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.