A company has two different processes that make credit cards. Suspecting that machine B has a higher variability than machine A the manager orders a test to be run. The following data was collected:
Machine Machine B
Sample size nA= 30 nB=40
Sample Standard Deviation sA= 1.0 sB= 1.7
Select the correct hypothesis to test for the difference in the variances. What is the critical value of the F distribution? Perform the test at the .05 level of significance. What is the observed value of the F distribution? What are your conclusions?
Hypothesis is tested for the difference in the variances using F distribution.