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State the conclusion based on the results of the test. According to the report, the standard deviation of monthly cell phone

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Answer #1

At first let's write Null and alternative hypotheses.

A researcher needed to test whether standard deviation of monthly cell phone bills is different from $48.09 i.e \sigma \neq48.09.

Actually the claim which is to be tested is taken as alternative hypothesis and so the above is alternative hypothesis.

Null hypothesis is mathematically against alternative hypothesis and so \sigma = 48.09 is Null hypothesis.

Ho : \sigma = 48.09

Ha : \sigma \neq 48.09

In our problem finally the null hypothesis is rejected.

It means that the data in our problem favours the alternative hypothesis.

Conclusion:

There is sufficient evidence to concude that the standard deviation of monthly cell phone bills is different from its level 3 years ago of $48.09

Hence option C is correct.

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