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 $171.87 and a sample of 23 automobiles 2 years old showed a sample standard deviation for annual repair costs of $118.35. Let 4 year old automobiles be represented by population 1. The data is located in the Microsoft Excel Online le below. E Open spreadsheet 1. State the null and alternative versions of the research hypothesis that the variance in annual repair costs is larger for the older automobiles. H0: all less than or equal to v w 1122 Ha: 1121 greaterthan V Q0 522 2. Conduct the hypothesis test at a 0.10 level of significance. Calculate the value of the test statistic (2 decimals). 2.11 9 Calculate the critical value (2 decimals). 2.02 0 Calculate the p-value (4 decimals). 0.0406 (9 Reject null hypothesis? w What is your conclusion? l Concludetha14 year old automobiles have a larger variance in annual repair costs compared to 2 year old automobiles v lw E17 " X V fx =ROUND(E10,2) A B D E F G H I J K L M XLMiner Analysis ToolPak X Car Age and Repair Cost ($) F-Test Two-Sample for Variances Anova: Single Factor 4 years 2 years 793 632 4 years 2 years Anova: Two-Factor With Replication 839 431 Mean 785.6923077 451.087 778 454 Variance 29539.34154 14006.36 Anova: Two-Factor Without Replication 791 404 Observations 26 23 895 406 df 25 22 Correlation 791 713 F 2. 108995524 775 573 P(F = B Sheet1 +
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