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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
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 $171.30 and a sample of 23 automobiles 2 years old showed a sample standard deviation for annual repair costs of $119.33. 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. Screenshot of ToolPak X Open spreadsheet 1. State the null and alternative versions of the research hypothesis that the variance in annual repair costs is larger for the older automobiles. Ho: G 1 less than or equal to v2 2 Ha: 02 1 greater than V 2 2 2. Conduct the hypothesis test at a 0.10 level of significance. Calculate the value of the test statistic (2 decimals). 2.06 0 Calculate the critical value (2 decimals). Calculate the p-value (4 decimals). .0454 0 Reject null hypothesis? Yes v What is your conclusion? Conclude that 4 year old automobiles have a larger variance in annual repair costs compared to 2 year old automobiles V V\f
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