A bank is considering ways to reduce the costs associated with passbook savings accounts. The bank has found that the variance in the number of days between account transactions for passbook accounts is 80 days squared. The bank wants to reduce the variance by discouraging the present use of accounts for short-term storage of cash. Therefore, after implementing a new policy that penalizes the customer with a service charge for withdrawals more than once a month, the bank decides to test for a change in the variance of days between account transactions. From a sample of 25 savings accounts, the bank fi nds the variance between transactions to be 28 days squared. Is the bank justifi ed in claiming that the new policy reduces the variance of days between transactions? Test the hypotheses at the 0.05 level of signifi cance
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