Question
A well-known college admissions committee recently conducted a study to determine the relative debt incurred by students receiving their degree in four years versus those
A well-known college admissions committee recently conducted a study to determine the relative debt incurred by students receiving their degree in four years versus those taking more than four years. Some on the committee speculated a four-year student would likely to attending full-time, whereas one taking more than four years could have a part-time job. However, average total debt provides only part of the information. Since the average, or mean, is affected by both large and small values, the committee also needed some way to determine the relative variance for the two groups. Samples of 10 produced standard deviation of 1513 for those taking more than four years and samples of 10 produced standard deviation of 2636 for those taking four years to graduate. Calculate the value of test statistic used to determine if the variance of the debt for those taking more than four-year to graduate is lower than those taking four years to graduate at the 5% level of significance (round your final answer to two decimal places). Assume population 1 = taking more than four years to graduate and population 2 = taking four years to graduate.Also assume that debts are normally distributed for both groups.
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