F test for variance

Please show a detailed process how answer was deduced.

A researcher hypothesizes that the variation in the amount of money spent on business dinners is greater than the variation of the amount of money spent on lunches. The variance of nine business dinners was $6.12 and the variance of 12 business lunches was $0.87. What is the test value?

A. 3.10
B. 9.61
C. 49.50
D. 7.03

Solution Summary

The solution provides step by step method for the calculation of F test statistic . Formula for the calculation and Interpretations of the results are also included.