F test for equality of variance
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An automobile manufacturer claims the variance in the fuel consumption for its vehicles is less than the variance of similar type vehicles from another competitor. A random sample of 19 of the manufacturer's vehicles has a variance of 16.2 mpg. A random sample of 21 of the competitor vehicles has a variance of 32.5. At a significance level of 0.05, find the critical value and test statistic that would be used for this hypothesis test.
Null hypothesis:
Alternative hypothesis: (Claim)
Subscript 1 refers to the competitor data.
Subscript 2 refers to the manufacturer data.
a) Critical value = 3.50 Test statistic = 0.50
b) Critical value = 2.01 Test statistic = 0.50
c) Critical value = 3.50 Test statistic = 2.01
d) Critical value = 2.19 Test statistic = 2.01
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Solution Summary
This solution gives the step by step method for computing test statistic of comparing the variance of two populations .
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