Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Linear Algebra and Its Applications

Authors: Gilbert Strang

4th edition

30105678, 30105676, 978-0030105678

More Books

Students also viewed these Mathematics questions