Most individuals are aware of the fact that the average annual repair cost for an automobile depends on the age of the automobile. A researcher is interested in finding out whether the variance of the annual repair costs also increases with the age of the automobile. A sample of 26 automobiles 4 years old showed a sample standard deviation for annual repair costs of $171.85 and a sample of 23 automobiles 2 years old showed a sample standard deviation for annual repair costs of $117.99. Let 4 year old automobiles be represented by population 1. The data is located in the Microsoft Excel Online file below. Due to a recent change by Microsoft you will need to open the XLMiner Analysis ToolPak add-in manually from the home ribbon. Conduct the hypothesis test at a 0.10 level of significance. 1. Calculate the value of the test statistic (2 decimals). 2. Calculate the critical value (2 decimals).
Most individuals are aware of the fact that the average annual repair cost for an automobile depends on the age of the automobile. A researcher is interested in finding out whether the variance of the annual repair costs also increases with the age of the automobile. A sample of 26 automobiles 4 years old showed a sample standard deviation for annual repair costs of $171.85 and a sample of 23 automobiles 2 years old showed a sample standard deviation for annual repair costs of $117.99. Let 4 year old automobiles be represented by population 1. The data is located in the Microsoft Excel Online file below.
Due to a recent change by Microsoft you will need to open the XLMiner Analysis ToolPak add-in manually from the home ribbon.
Conduct the hypothesis test at a 0.10 level of significance.
1. Calculate the value of the test statistic (2 decimals).
2. Calculate the critical value (2 decimals).
3. Calculate the p-value (4 decimals).
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