There is no sufficient evidence to indicate the true standard deviation is less than 4000
What is standard deviation ?
The standard deviation is a statistic that expresses how much variation or dispersion there is in a set of values. While a high standard deviation suggests that the values are dispersed over a wider range, a low standard deviation suggests that the values tend to be close to the set mean.
given that n = 16
x = 60139.7
s = 3718.06
∝ = 0.05
To test the hypothesis
H0 : = 4000
H1 : < 4000 (claim)
test statistics
x² = ((n-1)s²) / H0²
= (15 * 13823970.16) / (16000000)
= 12.96
P- value = P [x² < 12.96] DF = n-1 = 15
= 0.3946
0.1 < P-value <0.5
To learn more about standard deviation from the given link
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