Question
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 24 automobiles 4 years old showed a sample standard deviation for annual repair costs of $175 and a sample of 26 automobiles 3 years old showed a sample standard deviation for annual repair costs of $200. State the null and alternative versions of the research hypothesis that the variance in annual repair costs is lower for the older automobiles and if 0.05 level of significance, what is your conclusion? Discuss
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