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Problem 2. A real estate agent in Atlanta wants to compare variation in home prices between homes within the city limit and those in the
Problem 2. A real estate agent in Atlanta wants to compare variation in home prices between homes within the city limit and those in the suburbs. A sample of 21 homes recently sold in the city has a standard deviation of $45,600; and a sample of 18 suburban homes sold during the same period has a standard deviation of $21,330. Is it reasonable to conclude that there is more variation in home prices for properties within the city limit? a. Setup the appropriate null and alternative hypotheses. b. Construct the relevant test statistic. c. Test the hypotheses at the 0.01 significance level and state your conclusion
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