The following hypothesis are given.
H0: σ2/1 ≤ σ2/2
H1: σ2/1 > σ2/2
A random sample of five observations from the first population resulted in a standard deviation of 12. A random sample of seven observations from the second population showed a standard deviation of 7. At the .01 significance level, is there more variation in the first population?
Hypothesis test of variance are discussed in this solution.